BCHUSD: SMA200 as Support and Possible Buy Signal

If we don't take into consideration Bitcoin movements and bearish signals from the daily timeframe, the market looks very interesting for buying.

The price reached the support zone formed by 400.00 and SMA200. We have reversal candles that tell us about a possible reversal from the support.

RSI confirms the price reversal as well as MACD histogram. Yes, DMI is still bearish and supports the strength of sellers. If the price breaks 360.00 support, we should be ready to see a further downward movement.

If the price can stay above SMA200, it is possible to buy with stops below the local swing low. This trade will be risky, and it won't be suitable for every trader. But as an example, how we can trade in the direction of the main trend after a correction movement, this trade opportunity can be used.



Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.