Cryptocurrencies had a great time in Q2 of this year, with BITCOIN surging more than $10,000 higher during that time. But, the climb stopped in Q2 and Bitcoin was making lower highs during that period. It formed a base at around $9,000 which acted as a support zone, so it wasn’t making any lows, and Bitcoin was forming a triangle.

But, the lower highs were pointing to a break of the support zone at some point and eventually the break came last month. Bitcoin broke the lower line of the triangle and fell to $7,700 on my platform. Sellers tried a few times to push past that level, but failed, so a new support zone has formed now for Bitcoin around that level.

At the beginning of last week, the price started reversing higher, but the 50 SMA (yellow) provided resistance for some time. You could argue that the price moved above and below that moving average a few times last week. Yes, that’s true, but the volatility is pretty high in cryptocurrencies, so don’t expect support and resistance indicators to work exactly to the pip.

By the middle of last week, Bitcoin made another bullish move and pushed above the 50 SMA. But, the 100 SMA (green) turned into resistance towards the end of the week and Bitcoin returned back down to the 50 SMA. The 50 SMA turned into support on Friday and continues to act as such.

The price opened with a bearish gap today below the 50 SMA, but it climbed back up pretty quick, so now Bitcoin is trading between the 100 SMA at the top and the 50 SMA at the bottom. We could trade this range, but it is getting too narrow as MAs get closer, while the spread is pretty big in cryptos, so we’re staying out for now.