⚡Crypto Alert : Altcoins are up 28% in just last month! Unlock gains and start trading now - Click Here

Bitcoin has reversed down from the 20 SMA

Moving Averages Keep Bitcoin Confined

Posted Thursday, October 31, 2019 by
Skerdian Meta • 1 min read

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.

 

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies
Related Articles
Comments
0 0 votes
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments