2-Year MA Multiplier
Metric Description
2-Year MA Multiplier is a price channel composed of a combination of 730MA and 730MA*5 moving averages
When the price is lower than 730MA (the lower edge of the channel), it means that the current price of BTC is lower than the average holding cost of the past 2 years, which is historically an overly pessimistic market area
When the price is higher than 730MA*5 (the upper edge of the channel), it means that the current price of BTC is higher than 5 times the average holding cost of the past 2 years, which is historically an excessively greedy market area
This indicator gives an early warning signal that the current price of BTC is too high/too low relative to the long-term average holding cost. 730MA and 730MA*5 are a set of numerical combinations obtained based on the historical backtesting effect. As the volume of BTC becomes larger and larger, and the rise and fall of the bull and bear market gradually shrinks, the effect of this numerical combination may be reduced, but the early warning idea of its use is meaningful, and it is enough to find a suitable numerical combination. Since 730 days: 2 years, the 2-year MA Multiplier Channel gets its name from this.