Bitcoin just closed the Daily candle below the Volume-Weighted Average Price (VWAP) from September 5, 2020.
The VWAP represents the average price paid per share since the anchored date, in these cases, Sept 5, 2020, and March 13, 2020.
The VWAP is a great sentiment indicator.
When the price is above the VWAP, then the average position is profitable.
When the price is below the VWAP, the average position is losing money.
If you are losing money in your trade, are you more likely to buy more or sell?
My next level of interest is the purple VWAP from the March 13, 2020 low.
We have been anticipating this price action since April 25.
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