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Buying bitcoin below its 200-week average has historically delivered over 100% in median returns, Kraken says
Key takeaways
- The pain of holding through these periods has been minimal.
- That level is the 200-week simple moving average (SMA), which represents the token's average price over that period, providing traders with a clear glimpse of the long-term trend while cutting through day-to-day noise.
- Twice in the past two weeks, BTC dipped briefly below its 200-week SMA before climbing back above it by the end of each week.
The pain of holding through these periods has been minimal. Bitcoin BTC$65,285.01 has recently been flirting with a level that has historically proved a near-perfect entry point for bulls, generating handsome returns, crypto exchange Kraken's Chief Economist Thomas Perfumo told CoinDesk.
That level is the 200-week simple moving average (SMA), which represents the token's average price over that period, providing traders with a clear glimpse of the long-term trend while cutting through day-to-day noise.
Twice in the past two weeks, BTC dipped briefly below its 200-week SMA before climbing back above it by the end of each week. As of writing, bitcoin is trading at $63,900, just above the 200-week SMA of $62,358.
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