Bitcoin Reverses $ 3,000 Lower, but the 20 Daily SMA is Holding
Cryptocurrencies have been massively bullish during the last few months, but the bullish trend picked up even more pace this month, particularly in the last two weeks. The growing uncertainty in financial markets everywhere turned traders towards digital currencies, which have been acting as a safe haven.
BITCOIN surged from above $ 10,000 at the beginning of October, to $ 19,460s yesterday. Buyers tried the upside above $ 19,000 a couple of times, but they seemed reluctant to push closer to $ 20,000, which is the ultimate resistance for Bitcoin, since it was the high in late 2017.
That was a sign that the upside was running into some strong sell interest up there. Eventually, Bitcoin reversed back down, falling more than $ 3,000, to $ 16,300s. That was a major pullback, but the 20 SMA (gray) held as support on the daily chart.
It was pierced briefly, but the price pulled back $ 1,000 higher, which also shows strong buying pressure down at the $ 16,000s. We might try to go long on Bitcoin, although it has become increasingly dangerous to trade it closer to $20,000. Litecoin has also gone through a major pullback today, losing around 25% of the value, now trading at $75 from $94 yesterday.
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