Bitcoin has been trending higher all year, and now the cryptocurrency has pulled back.
The first pattern on today’s chart is the 50-day simple moving average (SMA). BTCUSD touched that SMA on Monday and today while remaining above it -- a potential indication of a bullish intermediate-term trend.
Second, the stochastic oscillator is trying to rebound from an oversold condition. Notice how prices bounced the last two times this happened. (See the white arrows.)
Third, despite the recent pullback, BTCUSD remained above roughly 26,540. That level was a weekly low on March 27 that prices held after rallying in the wake of Silicon Valley Bank’s collapse. It was also the location of a false breakdown below the March 22 low. Remaining above this price zone could also suggest the presence of an uptrend on the weekly chart.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing in cryptocurrencies involves significant risks. Please click here for TradeStation Crypto’s risk disclosures on investing and trading in cryptocurrencies.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.
The first pattern on today’s chart is the 50-day simple moving average (SMA). BTCUSD touched that SMA on Monday and today while remaining above it -- a potential indication of a bullish intermediate-term trend.
Second, the stochastic oscillator is trying to rebound from an oversold condition. Notice how prices bounced the last two times this happened. (See the white arrows.)
Third, despite the recent pullback, BTCUSD remained above roughly 26,540. That level was a weekly low on March 27 that prices held after rallying in the wake of Silicon Valley Bank’s collapse. It was also the location of a false breakdown below the March 22 low. Remaining above this price zone could also suggest the presence of an uptrend on the weekly chart.
TradeStation has, for decades, advanced the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. TradeStation Crypto, Inc. offers to self-directed investors and traders cryptocurrency brokerage services. It is neither licensed with the SEC or the CFTC nor is it a Member of NFA. When applying for, or purchasing, accounts, subscriptions, products, and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing in cryptocurrencies involves significant risks. Please click here for TradeStation Crypto’s risk disclosures on investing and trading in cryptocurrencies.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: www.tradestation.com/important-information.