Anyone who has read my charting posts knows I am a big fan of the 10 period moving average as an overbought/oversold tool.

At the end of April with the bitcoin monthly chart giving a spinning top candle and the 10 period average being way below price I voiced some concern about a pullback to digest the big move bitcoin had the 6 months prior.

Price did end up pulling back, but look where it found its footing.

## 10 Period Average....
![image.png](https://images.hive.blog/DQmc1aEKiiLPANrDfvq9298G84KrTdrbtfD8UFCrfr9dsJW/image.png)

Looking at the chart above you see price poked below the average each of the past three months but rallied to close above each time.

In my opinion this is bullish price action.  The reason I say this is because when looking at a daily chart of a coin that is in an uptrend, when it is holding the 10 day average the whole way up, it represents a strong control or price action from buyers.

So why should that be any different when looking at the monthly chart?

Also, volume shrunk on the sell off, which is another good sign as moves on decreasing volume often struggle to maintain trend.

With bitcoin at the 40K level again, it will be interesting to see if we get follow through to the upside and maintain the 10 period average.

Posted Using [LeoFinance <sup>Beta</sup>](https://leofinance.io/@scaredycatguide/bitcoin-price-bounce-of-the-10-period-average-nice-on-the-monthly)