Since its inception, the Bitcoin price over time has gone up. As in any market, the price swings in BOTH directions; there are times when Bitcoin skyrockets, and other times it drops like a rock. This is simply normal market behavior.
In order to get a clearer picture of the overall trend, traders and professional investors use price averages computed over time to smooth out the noise of the normal ups and downs. Two of the more popular ones are the 50-day moving average and the 200-day moving average.
By examining a Bitcoin price chart that displays a moving average, you’ll get a precise illustration of exactly what the price has been doing over a period of time. Here is a chart that shows the Bitcoin price going back 4 years, and includes the 200-day moving average (the solid red line):
The above chart clearly shows the changes in the Bitcoin price over the course of time. The Bitcoin price had an amazing run up in 2013, which was followed by a couple of years of “correction.”
The time is drawing very near for another amazing episode in which the Bitcoin price will soar to new all-time highs.
If you haven’t yet purchased Bitcoin, now is an excellent time to buy some.