Bitcoin How to Trade

Bitcoin reached SMA100 and could not break it from the 1st attempt. This resistance zone is strong and it's formed by the uptrend line, SMA100 and 7800.00 resistance level. RSI is in the overbought zone and it confirms the price reversal. MACD lines still confirm the upward movement, but MACD histogram already falls and gives a bearish signal. DMI is bullish and ADX confirms strength of bulls and trend market conditions. The market should correct the previous upward movement and start a new one from the support zone formed by a new uptrend line and 6500.00 support levels. Long positions will be opened based on a reversal signal.

Alternative variant: if BTC does not fall but continues the upward movement and it breaks the resistance, we'll be able to join to this movement based on a breakout signal.

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The price breaks SMA100 and it's goign to move above 7800.00 resistance level. The daily close price will confirm the breakout or may be the market will give us a reversal candlestick pattern. We'll see in several hours. If the price breaks the resistance zone, the next barrier will be 8000.00 resistance level. Watch for the price action in this zone.