Trade Bitcoin Trading

How Do You Trade a Bitcoin Trend Reversal

Bitcoin Trend Reversal Strategy

After bitcoin price has moved in a certain direction for an extended period of time within a bitcoin trend it reaches a point where it stops moving within the cryptocurrency trend. When this occurs we say the bitcoin trendline has been broken and this is interpreted and analyzed as a trend reversal.

Since the bitcoin trend line is the point of support or resistance and this point of support resistance has been broken after a bitcoin trend line break - we then expect bitcoin price to move towards the in the opposite direction and this is interpreted and analyzed as a trend reversal.

When this happens bitcoin traders will close the open cryptocurrency orders that they had bought or sold. This is known as taking and booking profit.

Up BTCUSD trend Bitcoin Reversal

When bitcoin price breaks-out below the upward bitcoin trend line (support) btcusd market will then move downwards

How to Identify a BTCUSD Trend Reversal Signal - Trendline Break Analysis

Bitcoin Upward Bitcoin Trend Line Break - How to Identify a Bitcoin Trend Reversal Signal

This btcusd crypto trend reversal setup is considered to be complete with the setup of lower high of the btcusd crypto price. This also provides a opportunity to sell once the trend line is broken - bitcoin reversal btcusd signal.

Down BTCUSD trend BTC/USD CryptoCurrency Reversal

When bitcoin price breaks-out above the downward line (resistance) the bitcoin price will then move up

How Do I Identify a BTCUSD Trend Reversal Signal? - BTCUSD Trend Line Break Analysis

Bitcoin Downward Bitcoin Trend Line Break -How to Identify a Bitcoin Trend Reversal Signal

This bitcoin trend reversal crypto currency signal is considered to be complete/confirmed with the formation of higher low. This crypto reversal setup also provides a opportunity to open a buy trade once the bitcoin trend line is broken - btcusd trend line reversal bitcoin trade signal.

NB: Sometimes when bitcoin price breaks its bitcoin trend it may first consolidate before moving in the opposite market trend direction. Either way it is always good to take profit when the btcusd market bitcoin trend reverses.

To trade this bitcoin reversal setup as a trader once you open a new bitcoin trade in direction of bitcoin trend reversal the bitcoin price should immediately head in that particular direction, in a bitcoin crypto price breakout manner. This means the bitcoin prices should immediately head in that direction without much of a resistance.

If on the other hand the bitcoin prices do not immediately head in direction of the bitcoin price breakout then it is best to close out the bitcoin trade because it means the bitcoin trend is still holding.

Another tip is to wait out for the bitcoin trend line to be broken & for the btcusd market to close above or below it to confirm this cryptocurrency trend reversal.

What happens is that many traders open trades waiting for a bitcoin reversal even before the bitcoin trend is broken, only for the bitcoin price to touch this bitcoin trend line and for the current market bitcoin trend direction to hold and bitcoin to continue with the current market trend.

Therefore, when trading this reversal setup it's best to wait til the btcusd price break out has been completed by bitcoin price closing above/below the bitcoin trend line, based on the direction of market.

  • Up-ward Market Bitcoin Trend Direction Reversal - this reversal crypto currency signal gets confirmed once the bitcoin price closes below this upwards bitcoin trend line, this should be the correct time to open a sell btcusd crypto trade, so that to avoid a bitcoin crypto currency fake out.

  • Downwards Market Bitcoin Trend Direction Reversal - this reversal crypto currency signal is confirmed once the bitcoin price closes above the downward bitcoin trend line, this should be the correct time to open a buy bitcoin crypto trade, so that to avoid a btcusd crypto currency fake out.

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