Moving Averages Still Supporting Bitcoin
Bitcoin is retracing lower, but it is facing the the 100 SMA on the H4 chart now
BITCOIN has been really bullish in the last two months, surging from around $ 13.000 to just below $ 20.000. The whole cryptocurrency market has been on a bullish trend since March, following the crash due to the coronavirus panic back then.
The price surged to $ 19,500 in November, but failed to reach the big round level at $ 20,000. In the last week of November, we saw a quick pullback, worth more than $ 3,000, but the decline stopped, and Bitcoin resumed the bullish trend again, this time reaching the previous high of $ 19,000 from back in December 2017.
However, buyers couldn’t break above this level and Bitcoin retreated back down. But the pullback was less severe this time, and moving averages have been providing support for Bitcoin for about a week now. The 100 SMA (green) has been doing a particularly great job on the H4 time-frame. Right now the price is trading right at the 100 SMA, which seems in danger, since buyers have been trying it too often recently, so we might see a break of the 100 SMA today.
If that moving average goes, then we have the 20 SMA on the daily chart standing at $ 18,600, which held the deeper decline in the last week of November. We will follow the price action to see if the moving averages hold, and if they do, we might open a buy trade here, which we will publish on our forex signals section.
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