How Do I 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 trend line has been broken and this is interpreted as a trend reversal.
Since the bitcoin trend line is the point of support or resistance and this point of support or resistance has been broken after a bitcoin trend line break - we then expect bitcoin price to move towards the opposite direction and this is interpreted as a trend reversal.
When this happens bitcoin traders will close the open cryptocurrency orders which they had bought or sold. This is known as taking profit.
Up BTCUSD trend Bitcoin Reversal
When bitcoin price breaks-out below the upward bitcoin trend line (support) btcusd market will then move downwards
Bitcoin Upward Bitcoin Trend Line Break - How to Identify a Bitcoin Trend Reversal Signal
This btcusd crypto trend reversal signal is considered to be complete with formation of lower high of the btcusd crypto price. This also provides a trading opportunity to sell once the bitcoin trend line is broken - bitcoin reversal bitcoin trade signal.
Down BTCUSD trend BTCUSD Crypto Currency Reversal
When bitcoin price breaks-out above the downwards line (resistance) the bitcoin price then will move up
Bitcoin Downward Bitcoin Trend Line Break -How to Identify a Bitcoin Trend Reversal Signal
This bitcoin trend reversal cryptocurrency signal is considered to be complete with the formation of higher low. This cryptocurrency reversal setup also provides a trading opportunity to open a buy bitcoin trade once the bitcoin trend line is broken - bitcoin trend line reversal bitcoin trade signal.
NB: Sometimes when bitcoin price breaks its bitcoin trend it may first of all consolidate before moving in the opposite market direction. Either way it's 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 move in that particular direction, in a bitcoin crypto price breakout manner. This means that the bitcoin prices should immediately move in that direction without much of a resistance.
If on the other hand the bitcoin prices do not immediately move 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 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 most traders open trade transactions 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 bitcoin reversal setup it's best to wait til the bitcoin price break out has been completed by bitcoin price closing above or below the bitcoin trend line, based on the direction of market.
- Up-ward Market Bitcoin Trend Direction Reversal - this reversal cryptocurrency signal is 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 btcusd crypto fake out.
- Downwards Market Bitcoin Trend Direction Reversal - this reversal cryptocurrency 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 fake out.