We can see the price has been trading between support and resistance since the beginning of February and we are now approaching support yet again. The first line of support has been very recreational and has provided support several times. Normally I would only have one major line of support but due to the volatility of crypto I've extended another level of support to include the two recent prices movements below the initial support. Every time we've seen it hit this support zone it bounces back up. For educational purposes only, I have drawn a green rectangle to indicate a buy zone. A strategy for buying in support zones is to set buy orders from the top of the support zone to the bottom. This way if the price drops lower than your first buy order, your second buy order will average out the cost. This will minimize risk and maximize returns.
If we see a bounce off of support, be cautious when we approach the 200 ema which is the bold purple line. In recent price action, it has acted as overhead resistance. We would need to see more volume than we have currently to break through that ema so be sure to pay attention to the volume.
If we see a bounce off of support, be cautious when we approach the 200 ema which is the bold purple line. In recent price action, it has acted as overhead resistance. We would need to see more volume than we have currently to break through that ema so be sure to pay attention to the volume.
Comment:
The reason my buy zone extends above support is because we have already hit support and may or may not hit it again before bouncing back up.