The recent price action in Bitcoin seems to highlight the importance of two simple moving averages (SMAs): the 50-hour (SMA) and the 100-hour SMA.
This chart highlights some important turns along both in the last five weeks.
First, notice how the entire rally started after prices pushed above the 100-hour SMA on December 12.
Next, BTCUSD held both lines after surpassing $20,000 and continuing to new highs. They were tested and held before Christmas, then again on December 29 and January 5.
Also notice how the big drop on January 10-11 came after prices failed to hold either SMA.
Finally, the most recent rebound came after the 50-hour SMA turned higher on Wednesday morning. This was a key bullish reversal.
BTCUSD has now pulled back to test its rising 100-hour SMA. It could be a positive sign for the bulls if it manages to hold this line.
Note: These charts use our custom script MA Speed.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
This chart highlights some important turns along both in the last five weeks.
First, notice how the entire rally started after prices pushed above the 100-hour SMA on December 12.
Next, BTCUSD held both lines after surpassing $20,000 and continuing to new highs. They were tested and held before Christmas, then again on December 29 and January 5.
Also notice how the big drop on January 10-11 came after prices failed to hold either SMA.
Finally, the most recent rebound came after the 50-hour SMA turned higher on Wednesday morning. This was a key bullish reversal.
BTCUSD has now pulled back to test its rising 100-hour SMA. It could be a positive sign for the bulls if it manages to hold this line.
Note: These charts use our custom script MA Speed.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
