Bitcoin and Tron Start to Bounce, But Remain Bearish As Long As They Stay Below MAs
Cryptocurrencies are in the middle of a strong pullback, after remaining really bullish since late last year. Bitcoin was eyeing the $40,000 level for the second time late last night, but it bounced higher today and moved above $45,000.
But, the climbs have been slow in the recent weeks which is a strong bearish signal, while digital coins seem unable to hold on to gains; that’s another bearish signal. Moving averages have now turned into resistance, rejecting any attempt to reverse the trend higher.
So, everything points down for cryptos and for BITCOIN in particular, after funds keep flowing out into other cryptos, in order to diversify the portfolios. As my colleague Aiswarya pointed out, “during the past one week, outflows from Bitcoin products and funds touched $98 million – 0.2% of the total assets under management (AUM)”. Bitcoin reversed back down below $45,000, after being rejected by the 20 SMA (gray) on the H4 chart.
Tron coin is also finding it hard to reverse higher and make decent gains. We see that the price slipped below the 50 SMA (yellow) on the daily chart last week, which used to be a solid support indicator since early this year.
That moving average turned into resistance right away, helped by the 20 SMA (gray) as well and the price has been sliding lower since then. The attempts to turn TRX/USD bullish seem weak and the smaller MAs are also providing resistance on the H4 chart, showing that the selling pressure is strong.
So, cryptos remain bearish for now, but this looks like a great opportunity to go long on them. Although, we will follow the price action to see where the end of this pullback will be and probably go long on Tron.
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