Bitcoin Now Trading Below the 50 SMA
BITCOIN turned bearish over the weekend. It lost around $200 which appears as a bearish gap on the chart above since my broker closes during weekends while the crypto market remains open. That reversal came after Bitcoin failed to break above the resistance area which stretches from $4,000 to $4,200.
Since the buyers couldn’t break the resistance zone, sellers became active and pushed the price lower during the weekend. They pushed lower, but the price found support at the 50 SMA on the H4 time-frame. Besides that, the area around $3,700 used to be resistance for Bitcoin during the last few months, so now it has turned into support.
Bitcoin has found it difficult to push below this level, but now the 50 SMA has moved above the price and it should turn into resistance. Stochastic is becoming overbought on this time-frame now and the chart setup points to another bearish move down. But it will take some time because that’s how cryptos trade – they make a move, wait for several days and then make another leg in that direction. So, we’re holding onto our sell signal which we opened about two weeks ago.
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