Bitcoin bull Michael Saylor wants any skeptics to just look at the four-year simple moving average (SMA) of the largest cryptocurrency which has taken a beating on the market of late.
“The best #bitcoin price signal for technocrats or maximalists is the 4 year simple moving average,” tweeted the CEO of MicroStrategy, which provides business intelligence, mobile software and cloud-based services.
A simple moving average or moving average is an indicator that calculates the average prices of a specific asset over a specific time period to generate a trend often masked by high volatility. The moving average calculates the average of a selected range of prices and divides it by the duration, to smoothen the random, short-term fluctuations of an asset’s price action.
The four-year simple moving average that Saylor mentioned in his Twitter post is simply the average price calculated over the period of four years.
As seen in the 4-year SMA image, the line has been acting as a support level for the price action of Bitcoin since 2014 with rare situations when BTC lost this line but then, immediately went back above.
Saylor has been a huge supporter of BTC even in the bearish trend that the token has been following recently.
“Bitcoin is the most certain thing in a very uncertain world, it’s more certain than the other 19,000 cryptocurrencies, it’s more certain than any stock, it’s more certain than owning property anywhere in the world,” Saylor told The Block in an interview.
Interestingly, MicroStrategy now owns 129,218 BTC tokens acquired at an aggregate purchase price of approximately $3.97 billion and an average purchase price of approximately $30,700 per bitcoin, as per an official filing with the United States Securities and Exchange Commission (SEC).