Bitcoin Battles the Downtrend
Bitcoin has pulled back in the last three weeks, but now it may be showing signs of a turn.
The first pattern on today’s chart is the falling trendline that began on November 10 and ran through the highs of November 15 and 25. It’s been above that line for more than a day. BTCUSD advanced after breaking similar patterns in late October, early October and late July. (See the white arrows.)
Next you have the 8-day exponential moving average (EMA). Turns in this line have often marked directional changes, highlighted by our custom script MA speed.
MACD is also showing a potential turn as the fast line nears a cross above the slow line.
At this point the chart offers little clarity because BTCUSD could take another stab to the downside, possibly testing the September high around $52,800. (It came within about $500 of that level on Sunday.) However if it holds and the 8-day EMA starts rising, traders who have seen this pattern before may look for a turn higher.
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TradingView is not affiliated with TradeStation Securities Inc. or its affiliates. TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
The first pattern on today’s chart is the falling trendline that began on November 10 and ran through the highs of November 15 and 25. It’s been above that line for more than a day. BTCUSD advanced after breaking similar patterns in late October, early October and late July. (See the white arrows.)
Next you have the 8-day exponential moving average (EMA). Turns in this line have often marked directional changes, highlighted by our custom script MA speed.
MACD is also showing a potential turn as the fast line nears a cross above the slow line.
At this point the chart offers little clarity because BTCUSD could take another stab to the downside, possibly testing the September high around $52,800. (It came within about $500 of that level on Sunday.) However if it holds and the 8-day EMA starts rising, traders who have seen this pattern before may look for a turn higher.
TradeStation is a pioneer in the trading industry, providing access to stocks, options, futures and cryptocurrencies. See our Overview for more.
Important Information
TradingView is not affiliated with TradeStation Securities Inc. or its affiliates. TradeStation Securities, Inc., TradeStation Crypto, Inc., and TradeStation Technologies, Inc. are each wholly owned subsidiaries of TradeStation Group, Inc., all operating, and providing products and services, under the TradeStation brand and trademark. When applying for, or purchasing, accounts, subscriptions, products and services, it is important that you know which company you will be dealing with. Please click here for further important information explaining what this means.
This content is for informational and educational purposes only. This is not a recommendation regarding any investment or investment strategy. Any opinions expressed herein are those of the author and do not represent the views or opinions of TradeStation or any of its affiliates.
Investing involves risks. Past performance, whether actual or indicated by historical tests of strategies, is no guarantee of future performance or success. There is a possibility that you may sustain a loss equal to or greater than your entire investment regardless of which asset class you trade (equities, options, futures, or digital assets); therefore, you should not invest or risk money that you cannot afford to lose. Before trading any asset class, first read the relevant risk disclosure statements on the Important Documents page, found here: https://www.tradestation.com/important-information.
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