Moving Averages
Moving averages track an asset's average price over a specific period, in this case, crypto-assets, over time. Timeframes may vary, but the significance of moving averages lies in their ability to highlight both long-term and short-term trends.
By examining snapshots of an asset's price across various timeframes, such as Bitcoin, traders can identify a "Golden cross," signifying that recent prices outperform older ones and suggesting an impending bullish trend.
Bitcoin's 2021 Golden Cross: In November 2021, Bitcoin formed a golden cross (see the green circle), that was followed by a significant rally that culminated in Bitcoin reaching its all-time high of over $68,000 shortly thereafter. This example demonstrates how moving averages can offer insight into a bullish market trend.