Bitcoin Heading Down After Failing Below the 50 Daily SMA - Forex News by FX Leaders
Let's see if the previous support area will hold in Bitcoin

Bitcoin Heading Down After Failing Below the 50 Daily SMA

Posted Monday, September 21, 2020 by
Skerdian Meta • 1 min read

Cryptocurrencies have been bullish since the middle of March, following the big crash back then on the coronavirus outbreak. BITCOIN claimed all the losses from that crash and climbed above February’s high at $10.500, reaching $12,500 by the middle of August.

But, that’s when buyers gave up and we saw a reversal in August. A head and shoulders pattern formed during last month and once September started, we saw a dive lower below $10,000 in a few days. This shows that the head and shoulders pattern from August worked out fine in Bitcoin.

Although, no candlestick closed below the $10,000 level or the 100 SMA (green) whihc tells us that the area down there has turned into support. The price reversed back up later this month, but buyers gave up below the 50 SMA (yellow) this time and the price is heading down to the 100 SMA and the $10,000 level. We will see if the support area will hold again, but if it does and a bullish reversing candlestick forms, then we might go long from there.

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About the author

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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