# PlanB 200WMA Indicator

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## 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.

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## 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.

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## Created By

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