#ABOUT:
- Using BCHAIN API to retrieve historical price data of Bitcoin in USD.
- Language(s): Written w/ Python and styled with HTML & CSS.
- Using Plotly Dash, data can be displayed in a multitude of ways.
#BTC Heat Map
- The BTC heat map is created using a formula from: https://www.lookintobitcoin.com/charts/200-week-moving-average-heatmap/
- A replication of the chart found on the site is created with data collected.
- Indicator Overview:
- In each of its major market cycles, Bitcoin's price historically bottoms out around the 200 week moving average.
- This indicator uses a colour heatmap based on the % increases of that 200 week moving average.
- Depending on the month-by-month % increase of the 200 week moving average, a colour is assigned to the price chart.
- How It Can Be Used:
- The long term Bitcoin investor can monitor the monthly colour changes.
- Historically, when we see orange and red dots assigned to the price chart, this has been a good time to sell Bitcoin as the market overheats.
- Periods where the price dots are purple and close to the 200 week MA have historically been good times to buy.
- Note: this is a slightly modified version of a concept created by @100trillionUSD. Use the link below to learn more about the original.
#BTC Golden Ratio
- The BTC Golden Ratio Chart is created using the formula from: https://www.lookintobitcoin.com/charts/golden-ratio-multiplier/
- Indicator Overview:
- The Golden Ratio Multiplier explores Bitcoin's adoption curve and market cycles to understand how price may behave on medium to long term time frames.
- To do this it uses multiples of the 350 day moving average (350DMA) of Bitcoin's price to identify areas of potential resistance to price movements.
- Note: multiples are of the 350DMA's price values rather than its number of days.
- These specific multiplications of the 350DMA have been very effective over time at picking out intracycle highs for Bitcoin price and also the major market cycle highs.
- As Bitcoin becomes adopted over time, it's market cycle highs hit decreasing Fibonacci sequence multiples of the 350DMA.
- This is because the explosive growth of Bitcoin on a logarithmic scale is slowing over time.
- As it's market cap increases it becomes more difficult for the same log scale growth rates to continue.
- If this decreasing Fibonacci sequence pattern continues to play out as it has done over the course of the past 9 years, then the next market cycle high will be when price is in the area of the 350DMA x3.
- The Golden Ratio Multiplier is an effective tool because it is able to demonstrate when the market is likely overstretched within the context of Bitcoin's adoption curve growth and market cycles.