What is Bitcoin Trend Reversal in Bitcoin Trading?

Definition and Meaning of a Bitcoin Trend Reversal and How to Trade a Bitcoin Trend Reversal

In bitcoin trading the bitcoin trendline break signal is used to signify a cryptocurrency market reversal crypto signal. When a bitcoin trend line is broken then it means that the momentum of the current bitcoin trend is reducing and current bitcoin trend might reverse and start moving in the opposite direction or form a consolidation cryptocurrency chart pattern before it reverses.

Bitcoin Trading Market Reversal Trading Signal

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 trend. When this happens we say that the bitcoin trend line has been broken.

Since the bitcoin trendline is the point of support or resistance then we expect the btcusd trading market to move towards the opposite direction. When this happens bitcoin traders will close the open bitcoin trade which they had bought or sold. This is known as taking profit.

Up BTCUSD trend Bitcoin Trading Reversal

When bitcoin price breaks-out upward bitcoin trend-line (support) btcusd trading market will then move down or form a consolidation pattern before moving downwards.

What's Upwards Crypto Trend Reversal in Crypto Trading? - What is a Crypto Upwards Trend Reversal?

This upwards bitcoin trend bitcoin trendline break reversal cryptocurrency signal is considered to be complete with the reversal bitcoin pattern of a lower high is formed on the bitcoin price chart. This also provides a trading opportunity to go short once the bitcoin trend line broken.

Down BTCUSD trend Bitcoin Trading Reversal

When bitcoin price breaks downward bitcoin trend-line (resistance) the btcusd trading market will then move up or form a consolidation pattern before moving upward.

What's Downwards Crypto Trend Reversal in Crypto Trading?

This downwards bitcoin trendline break reversal cryptocurrency signal is considered to be complete with the pattern of a higher low is formed. This also provides a trading opportunity to go long once the downward bitcoin trend line is broken.

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

To trade this bitcoin trend reversal setup as a trader once you open a new trade in direction of the bitcoin trend reversal the bitcoin price should immediately move in that direction, in a bitcoin price break-out manner. This means that the btcusd market should immediately move in that direction without much of a resistance.

If on the other hand the btcusd trading market does not immediately move in direction of the bitcoin price breakout then it is best to close out the trade because it means that the current bitcoin trend is still holding.

Another tip is to wait for the bitcoin trend line to be broken and for the btcusd trading market to close above or below the bitcoin trend line so as to confirm this cryptocurrency trend reversal signal.

What happens is that most traders open trades waiting for a reversal cryptocurrency signal even before the current 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 direction.

Therefore, when trading this bitcoin trend reversal setup it is best to wait until the bitcoin price break-out has been confirmed by bitcoin price closing above or below the bitcoin trend-line, depending on the direction of the market.

• Upward Bitcoin Market Direction Reversal - bitcoin trend line reversal cryptocurrency signal is confirmed once the btcusd trading market closes below this upward bitcoin trendline, this should be the correct time to open a sell bitcoin trade, so as to avoid a bitcoin trading whipsaw.

• Downward Bitcoin Market Direction Reversal - bitcoin trend line reversal cryptocurrency signal is confirmed once the btcusd trading market closes above the downward bitcoin trendline, this should be the correct time to open a buy bitcoin trade, so as to avoid a bitcoin trading whipsaw.