2-Year MA Multiplier #
The 2-Year MA Multiplier is an indicator used for Bitcoin and composed of two curves.
The signals it gives are mainly destined to long term investors. It shows the zones, which historically, were important reversal points.
The first curve is the 2 year moving average (2yr-MA), the second is simply the multiplication by 5 of the 2 year moving average (2yr-MA x 5).
Passing the 2yr-MA from the bottom has, in the past, brought a comeback from buyers powers, leading to a reversal. Breaking the 2yr-MA from the top has shown interesting take profit zones and has seen the comeback of selling power.
200 Week Moving Average Heatmap #
Created by the famous “Plan B”, this indicator shows the price “temperature” of Bitcoin, in order to determine if the asset is overheating or not. This indicator is relevant for mid and long term investors, not so much for traders.
It uses the 200 Week Moving Average and is easily understandable thanks to a color code ranging from purple to red.
A dot is added each month on the chart, the more the color goes towards the red, the more the asset is overheating.
Golden Ratio Multiplier #
The Golden Ratio Multiplier is an indicator used on Bitcoin which gives indications regarding the position in a cycle. The indications are relevant for long-term investors.
The indicator is based on the 350 days moving average (350DMA). The other curves are multipliers of this 350DMA and follow the Fibonacci sequence (0, 1, 1, 2, 3, 5, 8, 13) as well as the Golden Ratio at x1.6.
Crossing the 350DMA from the bottom is historically the start of a buying cycle signal, whereas the curves of multipliers can give selling signals.
Stock-to-Flow Model #
Originally used for commodities, the Stock-to-Flow model is also used on Bitcoin and describes the scarcity of a good. The stock represents in this case the total quantity of BTC tokens and the Flow represents the quantity of those tokens available on the market during the analyzed years. Therefore: Stock-to-Flow = Stock/Flow.
The colors used on the graph match the remaining days until the next halving.
A Stock-to-Flow which increases indicates a scarcity of the asset, which can cause an increase in the price due to the supply and demand law.
This indicator was very relevant in the past (a bit less nowadays), by matching the price of Bitcoin. It can therefore give indications about the future price of the famous cryptocurrency.
Bitcoin Logarithmic Growth Curves #
The Bitcoin Logarithmic Growth Curves has a logarithmic approach, as its name implies, by using historical data in order to predict the future variations of the price.
To be more specific, this indicator enables us to anticipate the tops and bottoms of Bitcoins cycles.
Indeed, it was created so that the external lines go through the old highs and lows of each cycle. The lines in between are Fibonacci levels.
Therefore we can consider the lower limit as a support and the higher one as a resistance.