Bitcoin: Key Support Zones and How to Trade

22. Juli 2020

If we look at the 1H chart, we will see a correction movement after a pump to 9440USD. We can draw a downtrend line, which will act as a signal line in combination with a breakout.

The 1st possible zone for buying is 9280USD level and SMA50. If the price reverses from this zone and breaks the local downtrend line, it will be a bullish signal in the direction of the main uptrend.

The breakout below the support zone will push the price down to the 2nd support zone. It is formed by SMA100, SMA200, and the main uptrend line. We will have to wait for reversal signals and a breakout above the downtrend line as an additional bullish signal. It will give us a good buying opportunity with stop orders below the uptrend line and profit targets at 9440USD and 9500USD.

If the price breaks SMA200 and the main uptrend line, it will be a strong bearish signal. The price will be able to move back to 9125USD support.
The bullish structure will be destroyed, and buyers will have to start building a new uptrend from scratch.



Disclaimer!
This post does not provide financial advice. It is for educational purposes only! You can use the information from the post to make your own trading plan for the market. But you must do your own research and use it as the priority. Trading is risky, and it is not suitable for everyone. Only you can be responsible for your trading.