Moving averages are a tool to perform technical analysis of an asset like bitcoin. They allow BTC price data to be smoothed and help identify underlying trends and make pattern identification easier.

If the moving average is sloping upward, it indicates an uptrend.
If it slopes downward, it indicates a bearish trend.

Bitcoin is an asset that has historically followed the trend and the moving average (SMA) that has given the best performance since 2015 to date is the 40-day one.

Crosses between moving averages are used to identify bullish and bearish periods, a cross of a short-term moving average that crosses above a long-term moving average indicates the beginning of a bullish period and suggests a buying opportunity, therefore On the contrary, a crossing of a short-term moving average that crosses below a long-term moving average indicates a bearish period and suggests a selling opportunity.

There are two crosses that are most followed by traders: the 50 and 200 SMA for medium-term trends and the 10 and 20 SMA for short-term trends.

In the bitcoin world there is an interesting crossing called the Pi cycle where the crossings of the 111 SMA and the 365x2 SMA are followed.