Anyone Buying the Dip in Bitcoin at the 50 SMA? - Forex News by FX Leaders
Cryptocurrencies are retracing down today

Anyone Buying the Dip in Bitcoin at the 50 SMA?

Posted Monday, February 22, 2021 by
Skerdian Meta • 1 min read

Bitcoin broke above $ 40,000 on the last week of January, as the surge of last year spilled into 2021. Last week buyers pushed above $ 50,000, as the cryptocurrency surge continued further, helped by Eliot Musk who bought $1.5 billion worth of Bitcoin earlier this month. We did a broad Bitcoin analysis for 2021.

But, the main reason for this never-ending surge is the fact that the world is changing and it’s not certain which fiat currency is going to survive this. ETHEREUM broke above $ 2,000 last week, while Bitcoin moved above $ 58,000 yesterday, since the cryptocurrency market remains open during weekends as well.

Moving averages have been doing a great job during this time, providing support on pullbacks lower and pushing the trend higher. Today we are seeing one of those pullbacks in cryptocurrencies, with Bitcoin trading more than $ 5,000 lower. Although, it seems like sellers are thinking twice at the 50 SMA (yellow) on the H4 chart now.

This might be a good opportunity to go long on BITCOIN , since the stochastic indicators has reached the oversold area as well. But, the decline has been too fast and we don’t want to catch a falling knife. So, we will follow the price action to see if we can get a bullish reversing signal, such as a doji/pin/hammer candlesticks around here. If that happens, then that would be a sign to consider buying Bitcoin.

Update: Bitcoin broke below $ 50,000 just now, so be extra careful at the moment is you are trading cryptos 

 

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
0 0 vote
Article Rating
Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments