There are two moving averages. The important 55 day moving average, the thick blue line. This gives the long term trend. The second short term moving average is a light red 14 day moving average. The red moving average indicates the short term trend.
If someone is thinking of buying bitcoin to use for today or tomorrow, they could look at the red moving average. If it is moving upwards or the price has crossed above it, a purchase is recommended. The red line moving downwards or the price crossing below it suggests to wait before purchasing or even to use or sell the Bitcoin .
The blue moving average helps with making longer term decisions. If the price is above the blue line or the blue line is moving upwards, a medium term purchase of Bitcoin is suggested. Perhaps the buyer is planning on moving money out of the country to relatives and the bitcoin may not be cashed in for a week. If the price passes below the thick blue line or the blue moving average is moving down, then waiting before purchase of bitcoin or even the sale of bitcoin is recommended.
The final analysis is of the two moving averages crossing each other. This provides the strongest confirmations of trend formations. If the red line crosses below the blue line the trend is highly and selling or waiting is recommended. If the red line passes above the blue line, buying and holding is highly recommended.