$9,000 Turns Into Support Again for Bitcoin, Aided by the 50 SMA

Cryptocurrencies turned bullish in Q2 of this year, with BITCOIN climbing more than $10,000, surging from $3,000 to below $14,000. But, the surge stopped towards the end of June and since then the highs have been getting lower. Although, lows weren’t getting lower, which means that a support zone was forming above the $9,000 level.

A descending trend line was connecting the highs, which also means that a triangle was forming. But, the support level was broken at the middle of October and the 100 SMA (red), which was also acting as some sort of support, got broken finally last week.

But, the 200 SMA (purple) resisted and the price bounced off of it two weeks ago, surging around $3,000 higher. But, the 100 simple MA (green) did a good job in providing resistance for Bitcoin and this altcoin reversed lower from there. Meanwhile, the previous support at $9,000 held last week and now it seems that Bitcoin is turning bullish again.

The price has formed two doji candlesticks down there which are reversing signals after the retrace lower. The 50 SMA (yellow) is also helping provide support on the daily chart. Yesterday, the price moved higher and the daily candlestick closed bullish, so the reversal is underway. Although, we will see if the buyers will keep control. If they push above the 100 SMA, then that would be a sign that Bitcoin has turned bullish again.

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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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