365-Day Moving Average

Definition ∞ A 365-day moving average represents the average price of an asset over the past 365 days. This technical analysis indicator smooths out daily price fluctuations to identify long-term trends in digital asset markets. It provides a delayed signal of market direction by continuously recalculating the average, thereby reducing the impact of short-term volatility. Traders and analysts use this metric to assess the sustained momentum of a cryptocurrency, often viewing price action above or below it as bullish or bearish indicators respectively.
Context ∞ The 365-day moving average is a widely observed benchmark for evaluating the long-term health and directional bias of crypto assets. Discussions frequently center on its crossovers with shorter-term moving averages, which can signal significant market shifts. Its utility in filtering market noise makes it a relevant tool for understanding macro trends reported in financial news concerning digital asset valuations.