The Gravity of Bitcoin’s 20-WMA
Bitcoin’s 20-Week MA (WMA) Multiple Helps Identify Overbought and Oversold Regimes
Bitcoin’s price relative to its 20-week moving average (WMA) has historically acted as an important valuation tool highlighting extreme highs and extreme lows. Periods where the multiple rises into the red zone have historically aligned with overbought conditions near cycle peaks, while dips into the green zone have marked oversold conditions and long-term accumulation opportunities. Across cycles, price repeatedly mean-reverts toward the 20-week average, reinforcing its role as a structural anchor for Bitcoin’s trend. The current multiple of 0.84 does represent oversold conditions but has not reached extreme territory based on historic lows.
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