Hi everybody!👨‍🚀 The history of bitcoin shows that any strong movement can be deceptive. In past the key indicator that shows strong movement in any direction was overcoming the level of the 200 moving average on the daily timeframe.
đź’ˇWhy is it so important? In the US market, the birthplace of technical analysis, the most popular is the simple 200-day moving average. It is considered one of the key technical indicators of the trend direction in the market. If the price chart is held above it, then the market is dominated by buyers, if the price goes down below-wait for sales.
The last time this line was rapidly broken up on April 2, 2019, BTC grew by more than 180%! But in July 2018, when BTC failed to break through this level, we saw a 60% drop on the contrary!
In 2016, when BTC was held above this level, it was able to grow by more than 2500%!
âť“What should I do now? 1. If you haven't bought BTC yet. âś…Wait until the Bitcoin is fixed on the daily timeframe and stands above 200 MA for at least 2 days to safely start buying.
2. If you have already purchased BTC. âś…Be prepared to exit from the position (or hedge with the help of a short-trade) if the price goes below $7400. ______________________________________________________________________________________________________________ Money management is your way to success! All successful trades! See my last successful ideas about BTC below!