Has the Trend Changed for Cryptocurrencies, As the 100 SMA Turns into Resistance in Bitcoin? - Forex News by FX Leaders
Buyers have lost the momentum in cryptos

Has the Trend Changed for Cryptocurrencies, As the 100 SMA Turns into Resistance in Bitcoin?

Posted Friday, November 27, 2020 by
Skerdian Meta • 1 min read

We have witnessed quite a surge in cryptocurrencies during this month, which picked up pace in recent weeks. The trend turned bullish in cryptos since after the crash in March, as they turned into the ultimate safe haven during these times of trouble, but this month they have been absolutely surging.

BITCOIN nearly doubled in value, increasing from around $ 13,000 to $ 19,300s. All other altcoins surged higher too, with ETHEREUM increasing from $ 380 to $ 620, LITECOIN climbing from $ 50 to $ 93 and RIPPLE from below $ 0.30 to above $ 0.77, which means a 250% increase almost.

But buyers were finding it difficult to make new highs as the price approaches closer to $ 20,000. On Wednesday we saw a reversal down, which continued yesterday. The price broke below moving averages, which were acting as support on the H4 chart. That’s a sign that buyers might not be in control anymore.

The 100 SMA (green) turned into resistance, rejecting the price, which is another bearish signal. Although, the price is not falling anymore now. So, there’s some uncertainty in cryptos now, after the pullback lower all across the board during the last few days. This might as well be a good opportunity to buy them, but the we will see how they will react in the next few sessions. If Bitcoin climbs above the 100 SMA and stays there, then that would be a bullish sign. So, let’s observe the price action until then.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

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.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of