Analyzing Bitcoin price with exponential moving averages
Exponential moving average (EMA), also known as an exponentially weighted moving average (EWMA), is a type of moving average that places greater weight and significance on the most recent data points. After calculating EMA for Bitcoin price data, we can visualize the EMA rainbow - which shows multiple levels Bitcoin has historically priced between. Each level of the EMA rainbow highlights periods of price over or under-valuation. Consequentially as price is nearing towards to the top of the rainbow in the Red / Orange bands, Bitcoin might be in a time of over-valuation. As price is nearing the bottom of the rainbow in the Blue / Purple bands, Bitcoin could potentially be in a period of under-valuation.
Bitcoin AI
EMA rainbow bands — Bitcoin AI can explain over- and undervaluation zones.