A moving average is just the average price over the last N periods, redrawn each day. It smooths out the noise so you can see the trend underneath.
The 20-period MA hugs price closely and shows the short-term trend. The 50 is the medium-term trend. The 200 is the big-picture line — price above its 200-day average is broadly a bull market; below it, broadly a bear market.
In an uptrend, price often pulls back to a rising MA (commonly the 20 or 50) and bounces — traders watch these as dynamic support. When a fast MA crosses above a slow one ("golden cross") it signals strengthening trend; the reverse ("death cross") signals weakening.
For long-term positioning, the 200-day (and its weekly cousin, the 200-week) is the line that separates bull from bear. Most durable Bitcoin bottoms have formed near the 200-week average.
See the idea in action — see every key MA and whether each is bullish or bearish.
Open Moving Average DashboardCreate free accountWhat's the difference between SMA and EMA?
An SMA weights every period equally; an EMA weights recent prices more, so it reacts faster. Both are widely used.
Which moving average is best for crypto?
The 200-day and 200-week for the big trend; the 20 and 50 for shorter-term entries and dynamic support.
What is a golden cross?
When a shorter MA (e.g. 50) crosses above a longer one (e.g. 200) — often read as a bullish trend-strength signal.