Moving Average Support and Resistance Levels

Moving Averages can be used as points of support and resistance on bitcoin charts.

When bitcoin price reaches the moving average, the Moving Average level can act as a point of support or resistance for the bitcoin price.

Buy Trading Signal

If bitcoin price is on an upward bitcoin trend & starts to retrace, then most traders might wait to buy at a better bitcoin price when the bitcoin price hits a support level. Bitcoin Traders will sometimes use the Moving Average to determine the support level.

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

A stop-loss should be set just below the Moving Average bitcoin Indicator. Ideally it should be set a few pips below the previous low.

How to Trade Bitcoin with Moving Average Strategy

Sell Trading Signal

If the bitcoin price is on a downward bitcoin trend & starts to retrace, then most traders might wait to sell at a better bitcoin price when the bitcoin price hits a resistance level. Bitcoin Traders will sometimes use the Moving Average to determine the resistance level.

A sell cryptocurrency signal is generated when bitcoin price hits the Moving Average, turns and starts moving in the downward bitcoin trend direction. The cryptocurrency signal is confirmed when bitcoin price closes below the Moving Average. Because many bitcoin traders use the moving averages to generate cryptocurrency trading signals, bitcoin price will normally react to these levels.

A stoploss should be set just above the bitcoin trading moving average indicator. Ideally it should be set a few pips above the previous high.

Sell Bitcoin Signal - How to Trade Bitcoin with Moving Average Strategy

Resistance Level turns Support Level

In Bitcoin Trading - When a resistance level is broken it turns into support and vice versa.

This happens when the fundamentals of a bitcoin trend change and consequently the direction of bitcoin crypto. Direction change is reflected by the moving average cryptocurrency technical indicator, the direction is confirmed when resistance zone turns into support area or vice versa (when support area turns into resistance level)

Resistance Level turns Support Level - Moving Average Bitcoin Strategy Example