Basic trend analysis of Bitcoin in USD

BITSTAMP:BTCUSD   Bitcoin / U.S. Dollar
This is a very simple chart of the Bitcoin in USD. The aim of this analysis is to help an individual who might buy 0.1 BTC or 1 BTC to make a purchase or to send to friends or family overseas. The time window might be over a day or two to a week or two. The individual will better know whether to buy now, wait a couple of days or even a week. It is not aimed at long term investors or speculators but can also provide insight for them.

There are two moving averages. The important 55 day moving average, the thick blue line. This gives the long term trend. The second short term moving average is a light red 14 day moving average. The red moving average indicates the short term trend.

If someone is thinking of buying bitcoin to use for today or tomorrow, they could look at the red moving average. If it is moving upwards or the price has crossed above it, a purchase is recommended. The red line moving downwards or the price crossing below it suggests to wait before purchasing or even to use or sell the Bitcoin .

The blue moving average helps with making longer term decisions. If the price is above the blue line or the blue line is moving upwards, a medium term purchase of Bitcoin is suggested. Perhaps the buyer is planning on moving money out of the country to relatives and the bitcoin may not be cashed in for a week. If the price passes below the thick blue line or the blue moving average is moving down, then waiting before purchase of bitcoin or even the sale of bitcoin is recommended.

The final analysis is of the two moving averages crossing each other. This provides the strongest confirmations of trend formations. If the red line crosses below the blue line the trend is highly bearish and selling or waiting is recommended. If the red line passes above the blue line, buying and holding is highly recommended.
Comment: An example might be on the 15/4/2017, the red line has just been crossed lower by the price. A short term buyer might wait for the price to cross above before making a purchase. It suggests the short term trend has changed. The price is still above the blue line so a medium term view suggests purchases can be made, however the buyer might also wait for the price to cross above the red line again to give extra confirmation to the trends positive momentum.