Moving Averages Keep Bitcoin Confined

BITCOIN surged higher in Q2 of this year, after going through a really bearish period in 2018. Cryptocurrencies turned bullish in Q2 and Bitcoin climbed more than $10,000, but the climb ended below $14,000. Since then, Bitcoin has been making lower highs.

It formed a triangle for a few months, since the lows were not getting lower. A support area formed above $9,000, so the triangle was getting narrower as highs kept getting lower. The triangle was broken at the end of last month and the 20 SMA, which was providing support for a few weeks, was broken as well.

The price continued nearly $2,000 lower, but the 100 SMA (green) turned into support. Bitcoin pierced this moving average last week, but the price returned higher. Bitcoin moved above $10,000 over the weekend, but it pulled back lower.

It seems that the 20 SMA which was providing support earlier, has now turned into resistance. So, Bitcoin is stuck in between these two moving averages now. If the price continues lower and finds support at the 100 SMA again, then we might go long from there.

 

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Skerdian Meta
Lead Analyst
Skerdian Meta Lead Analyst. Skerdian is a professional Forex trader and a market analyst. He has been actively engaged in market analysis for the past 11 years. Before becoming our head analyst, Skerdian served as a trader and market analyst in Saxo Bank's local branch, Aksioner. Skerdian specialized in experimenting with developing models and hands-on trading. Skerdian has a masters degree in finance and investment.
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