Bitcoin: Buy Signals in The Bearish Market

The support zone between SMA200 and 8000.00 support level holds the market. In spite of the attempts to break this zone, the price could not stay below, and it gives us a possible buy opportunity. It does not mean that the market became bullish again. If in the long run it looks upward, in the medium term, the market can continue the falling. Even if the price bounces from the support zone and moves upward, the resistance zone between 9000.00 and the downtrend line will be able to stop buyers. The only breakout above this zone and moving above 10 000.00 level will allow us to think about the continuation of the uptrend.

RSI confirms the price reversal from the support zone. MACD histogram confirms the bouncing and upward movement. These signals can be used for opening buy trades above 8500.00 with stop orders below 7700.00 as it is the local swing low. The main profit target should be at the downtrend line.

If we talk about buying based on the current signals and the market condition, we have to talk about risk trading. The market also can drop below the local swing low and continue falling. The risk reward ratio is not so good as it could be. That's why we should think about opening long positions.


If we talk about long term trading and holding Bitcoin for many months and years, the price reversal from the 8000.00 can be used too. But only if you build long term positions and use the proper risk and money management.

I shared with you my ideas about the further market movement and how to trade. My understanding is based on Technical Analysis. But don't forget that fundamental factors also can add something, which will change the whole picture and we will get new signals and new trading opportunities.