Michael Saylor says investors may be watching the wrong Bitcoin (CRYPTO:$BTC) chart. During Strategy Inc‘s (NASDAQ:MSTR) second quarter earnings call, the executive chairman argued that Bitcoin’s 200-week moving average offers a better way to judge the cryptocurrency’s long-term value than its day-to-day price swings.

He described the metric as something “akin to the basis in Bitcoin or the book value with Bitcoin,” saying many of Bitcoin’s major price moves tend to be anchored around it.

“Bitcoin right now… is trading at a very slight premium to the 200-week moving average,” Saylor said.

He added that Bitcoin has traded at a higher premium than its 200-week moving average for about 91% of the network’s history, suggesting today’s valuation is relatively subdued compared with most historical periods.

Long-term perspective

Saylor said investors should take a longer-term view of the asset instead of reacting to short-term price volatility.

“If you’re a capital investor, I’d say you have to take a four-year time horizon. The right price signal to look at is the 200-week moving average,” he said, describing the indicator as a steadily rising measure of Bitcoin’s underlying value over time.

Strategy recently added the metric to its investor website alongside other Bitcoin indicators, including market capitalization, ETF flows, hash rate, Bitcoin dominance and the Fear & Greed Index. Saylor encouraged investors to use those metrics to evaluate the health of the company’s primary capital asset rather than focusing solely on Bitcoin’s daily price movements.

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