Trade Bitcoin Trading

MA Support and Resistance Zones

Moving Averages (MAs) can serve as support and resistance points on Bitcoin charts.

Bitcoin price hits the moving average. It then serves as support or resistance.

Buy Signal

If the price of bitcoin is going up and then starts to go down a bit, many traders might wait to buy at a better price when it reaches a level where it usually bounces back up. Bitcoin traders sometimes use the MA to find this level.

A buy cryptocurrency signal gets derived and generated when bitcoin price hits the Moving Average, turns and starts heading in the upward bitcoin trend direction. The cryptocurrency signal is confirmed when bitcoin price closes above the Moving Average. Because many bitcoin cryptocurrency traders use the MAs to generate cryptocurrency trading signals, bitcoin cryptocurrency price will usually react to these levels.

Place a stop loss right below the moving average indicator for Bitcoin. Aim for a few pips under the last low.

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Sell Trade Signal

If the bitcoin price is in a downtrend and begins to correct upwards, many traders might choose to delay selling, hoping to execute at a more favorable price point when the bitcoin price reaches a known resistance level. Bitcoin traders frequently utilize the Moving Average (MA) to pinpoint these resistance zones.

A sell signal for cryptocurrency assets emerges when the price of Bitcoin reaches the Moving Average, reverses direction, and begins moving down in the prevailing trend. The validity of this forthcoming signal is confirmed once the Bitcoin price settles below the established Moving Average. Given that many Bitcoin traders rely on MAs for generating trading signals, price action frequently reacts decisively around these specific levels.

A stop-loss should be placed a bit above the moving average line used in bitcoin trading. It should ideally be a few pips past the recent high point.

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Resistance Zone turns Support Area

In Bitcoin, when a resistance level is breached, it becomes support, and vice versa.

This occurs when the basics of a bitcoin trend shift, changing the direction of bitcoin crypto as a result. This change is shown by the moving average technical indicator, confirmed when the resistance zone becomes support, or support becomes resistance.

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