The Trend Remains Strong in Bitcoin as it Finds Support at the 20 SMA
Cryptocurrencies turned bullish in the Q2 of this year after consolidating in Q1, following a terrible year in 2018. BITCOIN consolidated between $3,00 and $4,000. They broke all major levels without much resistance and Bitcoin broke above the big round level at $10,000 as the bullish trend picked up pace. Now, most major cryptos are quite bullish.
I mentioned last week that now that the $10,000 level has been broken for Bitcoin, it will probably turn into support. After shooting for $14,000 last week, Bitcoin started to retrace lower by the middle of last week, which was long overdue after this strong uptrend. The price did slip below $10,000 but it didn’t get too far below there and reversed back up.
The 20 MSA (grey) also provided support during this pullback since the candlesticks didn’t close below that moving average. This also shows that the trend is really strong as the smaller period MAs provide support/resistance during such occasions.
On Wednesday Bitcoin formed a big bullish candlestick after the hammer in the previous day, which is a strong reversing signal. Yesterday, the sellers tried to push the price down but it eventually closed near the opening level which is another bullish signal. So, Bitcoin is on a strong uptrend now, same as other major cryptos, and we will try to get in on this uptrend when it retraces down again.
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