Chart of the Day - Wednesday, September 8th, 2021

Today’s Chart of the Day was shared by Steve Deppe (@SJD10304). It's a daily bar chart of Bitcoin over the past three months. Bitcoin tumbled as much as 18% in the past two days, however, buyers showed up at the 50-day moving average, keeping the uptrend intact for now. Steve jokes that 2021 is the year of the 50-day moving average because whether we're talking about Stocks or Crypto, the 50-day moving average has been the one to watch recently. Take a look at how the S&P 500 has responded to its 50-day this year....it has successfully tested it about seven times. To be clear, this moving average won't always act as support. But, it has done a great job of defining the intermediate-term trend and can help traders manage risk. Above the 50-day = the intermediate-term trend is bullish. Below the 50-day = the intermediate-term trend is bearish.