Bitcoin – Interesting Support for The Market
Bitcoin / Dollar BITSTAMP:BTCUSD
I want to pay attention to how SMA with period 200 supports the price. It’s rather interesting! Don’t you think so?
When the price broke SMA200 which acted as a resistance line and moved above, from that moment SMA became a new support line. The price bounced from it two times and moved upward to the resistance levels. Now we have the 3rd price reversal from the zone at SMA200, and if the price breaks the local downtrend line, we will be able to see the upward movement to 4000.00 and 4200.00 levels. The breakout can be used for opening buy positions for short term trading.
Alternative variant, if the price bounces from the downtrend line, the downward movement will be to SMA200 and price action in this zone will tell us about further market movements. The reversal from SMA will support bulls, but if the price breaks it, we should be ready to see the falling to 3600.00 support and the main uptrend line from higher timeframe.
What do you expect from Bitcoin in the short term? Please, share your ideas below this post. Also if you support my work by clicking LIKE button, I will be very grateful!
Source: TW DLavrov