Bitcoin’s Over Sold Bounce – Confirmation Looms

Bitcoin’s Over Sold Bounce – Confirmation Looms
November 29 03:52 2018 Print This Article

It doesn’t take much for us to get excited these days.  Bitcoin got one big rally day and people are shouting the bottom is in.

The New Line In the Sand

The 3,700 area was our next downside target and possible support.  Thus the fact Bitcoin found some support at the next support level makes a little bit of sense.

When price hits a support level often times it will get a bounce off of it, especially when things are oversold which bitcoin certainly qualified as given the recent down move.

If you look at the chart in the post you will see we got the big green day that took us right to the 10 day moving average (blue line).   That is something I use as a gauge for price being very over sold or over bought.

Now that we are flirting with it – and you may notice it’s the area where price action lost some steam – we are no longer in a very oversold environment.

The Next Step In the Game

Basically what we are looking out for now is if price will in fact confirm that test of 3700 and maintain some of today’s gains.   When I look into shorter time frames I see some consolidation in the 3,900 area so if we can stay above that and then push higher a further move up could be in the cards.

The opposite scenario is if we come back down to test 3,700, then we must sweat out holding that level otherwise we will likely touch the 2,900 area.

 

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scaredycatguide
scaredycatguide

Providing Investing Education for the Risk Adverse

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