Bitcoin Finds Support at the 200 SMA
Skerdian Meta • 1 min read
In the US session brief, we highlighted the retrace in cryptocurrencies 9ncluding Bitcoin. Altcoins formed an uptrend after the scary dive that took place between the end of December and the beginning of February. Some of them doubled in value, such as Litecoin and Bitcoin. Although, today they’ve been retracing lower and almost all of the major cryptos have reached interesting levels.
The 200 SMA provided support earlier today
As you can see from the H4 Bitcoin chart above, Bitcoin has retraced lower after making new highs yesterday evening. But, the 200 moving average (purple) held its ground and contained the decline. This moving average provided some resistance by the end of last week, now turning into support.
The stochastic indicator has reached oversold levels. This means that this timeframe chart is oversold and the retrace lower is complete. So, the trend is up and the retrace is done. This looks like a good opportunity to go long. We are already long on Bitcoin so we are not taking any trades here, but those who are out of Bitcoin should consider this opportunity.