PlanB 200WMA Indicator

200-Week Moving Average (200WMA) Indicator

Summary

The 200-Week Moving Average (200WMA) is a long-term Bitcoin valuation benchmark.

• It smooths out price action by averaging the last 200 weeks.

• Serves as a “floor” indicator during bear markets.

• Highlights long-term trend growth independent of short-term volatility.

---

Steps to Use the 200WMA Indicator

1. Understand the concept

• Moving average: Arithmetic and geometric versions are used.

• Time horizon: 200 weeks ≈ 4 years (one halving cycle).

• Purpose: Identify Bitcoin’s long-term trajectory.

2. Interpret the 200WMA Chart

• Black line: 200-week arithmetic mean.

• Gray line: 200-week geometric mean.

• Colored dots (BTC Price): Represent months until halving

3. Analyze Historical Patterns

• Bear market lows: Price often touches or slightly dips below 200WMA

• Bull markets: Price remains far above the moving average.

• Trend growth: 200WMA steadily rises, reflecting adoption and scarcity.

4. Make Decisions

• At or near 200WMA: Historically strong long-term accumulation zones.

• Above WMA: Reflects confidence, but watch for overheating.

• Compare arithmetic vs. geometric: Provides different valuation lenses.

Tips

• Use 200WMA as a macro floor model.

• Track deviations to identify overvaluation or undervaluation.

• Combine with RSI to align timing with momentum.

• Monitor halving dots to anticipate supply-driven cycles.

• Prefer log scale charts to view exponential growth clearly.

---

---

Created By

Created By: This indicator is a widely recognized tool in Bitcoin technical analysis.