Moving Average Support and Resistance Levels
Moving Averages can be used as points of support and resistance on cryptocurrency charts.
When btcusd price reaches the moving average, the Moving Average level can act as a point of support or resistance for the cryptocurrency price.
Buy Bitcoin Trading Signal
If btcusd price is on an upward bitcoin trend and starts to retrace, then most bitcoin traders might wait to buy at a better btcusd price when the btcusd 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 btcusd price hits the Moving Average, turns and starts moving in the upward bitcoin trend direction. The cryptocurrency signal is confirmed when btcusd price closes above the Moving Average. Because many bitcoin traders use the moving averages to generate cryptocurrency trading signals, btcusd price will normally react to these levels.
A stop loss should be set just below the Moving Average bitcoin trading Indicator. Ideally it should be set a few pips below the previous low.
How to Trade Bitcoin with Moving Average Strategy
Sell Bitcoin Trading Signal
If the btcusd price is on a downward bitcoin trend and starts to retrace, then most bitcoin traders might wait to sell at a better btcusd price when the btcusd 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 btcusd price hits the Moving Average, turns and starts moving in the downward bitcoin trend direction. The cryptocurrency signal is confirmed when btcusd price closes below the Moving Average. Because many bitcoin traders use the moving averages to generate cryptocurrency trading signals, btcusd price will normally react to these levels.
A stop loss 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 Trading 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. The direction change is reflected by the moving average cryptocurrency indicator, the direction is confirmed when the resistance turns into support or vice versa (when support turns into resistance)
Resistance Level turns Support Level - Moving Average Bitcoin Trading Strategy Example