The four most famous international exchanges:

Binance INTL	OKX INTL	Gate.io INTL	Huobi INTL
China Line　APP DL	China Line　APP DL	China Line　APP DL	China Line　APP DL

Note: The above exchange logo is the official website registration link, and the text is the APP download link.

As the king of coins, although the price of Bitcoin has plummeted in recent months, it still cannot shake the position of Bitcoin in the currency circle. It is precisely because of this that there are still countless people investing in Bitcoin in the market. As we all know, if you want to make money through Bitcoin trading, you must first understand the Bitcoin market chart, that is, the K-line chart. The various lines in the K-line chart have different meanings. Among them, there is a Bitcoin five-day line. Many investors don’t know which Bitcoin five-day line is it? The following currency circle editor will tell you in detail which Bitcoin five-day line is it?

 Which Bitcoin five-day line is it?

Bitcoin five-day line is the five-day moving average-MA5, that is, the average closing price of five days.

The five-day line represents the average holding cost of investors within 5 days, that is, the average purchase price of 5 days. It also reflects the psychological price of investors, which can represent the support level or pressure level.

When it rises, there is a trend of making money. If every time you return to the five-day line, investors hope to break through the five-day line, that is, sell after the price rises above the cost price, which is a support level; every time you approach the five-day line, it is recommended to buy at this time.

When it falls, there is a tendency to be locked in losses. If you return to the five-day line, investors hope to break through the five-day line to recover their investment before selling, which is a pressure level. Every time you approach the five-day line, it is recommended to sell at this time.

 How to read the five-day line of Bitcoin?

In actual combat, short-term investors should not be completely passive in their grasp of the moving average, but can be predicted to a certain extent. Generally speaking, the shorter the moving average, the closer it is to the market price trend. Therefore, it is best to use the short-term moving average theory to track short-term trends. The five-day moving average is the most important component of the short-term moving average. Although its stability is poor, it can sensitively reflect the short-term price fluctuation trend. It is one of the most popular technical parameters used by experts for short-term operations.

1. To judge the next trend of the five-day moving average, you should first analyze the price changes within five days, and then compare the price with the price five days ago.

If the price in the past five days is rising, if the current price is higher than the price five days ago, the five-day moving average will continue to rise. If the price increase is smaller than that five days ago, the upward movement of the five-day moving average will slow down or even flatten. If the price is lower than the price five days ago, the five-day moving average will turn downward. The downward turn indicates that the price will not be able to maintain the upward momentum and the price will reverse, which constitutes a sell signal.

2. When short-term investors sell according to the five-day moving average, Xirou recommends that they should observe several indicators. If the five-day moving average continues to rise without a downward turning point, but diverges from the average volume line and most indicators, a sell signal is issued instead of a buy signal.

The above is the answer from the editor of Coin Circle to the question of which is the five-day line of Bitcoin. In fact, whether it is the five-day line or other K-line charts, they are all used for technical analysis, and the core means of technical analysis require investors to understand some basic principles. One of them is to use technical analysis to solve the direction of the transaction and judge the level of the market. If the direction and level are determined, then you will have a basis for the time frame of entry and exit, and the reward-risk ratio can be basically determined. These are all closely related to the time period. Whether you are doing medium- and long-term trend tracking, short-term swing trading, or even intraday ultra-short-term trading, you cannot do without this core issue.