Cryptocurrencies on the Slide, An Opportunity to Jump in on the Long Side?
Skerdian Meta • 1 min read
Cryptocurrencies have been climbing forever since they first appeared. It hasn’t been a smooth ride, but the trend in most cryptos is clear.
People don’t want to be left out; everyone wants a piece, so more and more people are jumping in. There are many who think that cryptocurrencies are going to replace the fiat money that we have used so far, hence the strong uptrend.
Cryptocurrencies have been following Bitcoin higher since the start
Yesterday though, cryptos consolidated while today they are on the slide. As recent experience has taught us, cryptos resume their climb after every dip such as this one. So, is this one of those rare occasions when cryptos pullback lower only to set up a buying opportunity?
Bitcoin has declined today but it seems like the decline has stalled
Well, as you can see from the H4 chart above, Bitcoin is almost oversold on this timeframe. The stochastic indicator is near the bottom of the window and soon it will be oversold.
Besides that, the 50 SMA (yellow) is likely to provide support. If it doesn’t, there are more moving averages below that, so they will definitely hold the ground.
By the time the price reaches the first moving average, stochastic will already be oversold which would be a perfect buying set up. Let’s hope that the sellers take the price down there so we can have a safer trade.