Below shorter term MA levels now
Bitcoin surged higher in trading today. There was some chatter about Amazon Bitcoin. I kid you not.
The price surge took the price to a high of $7392.95 On Monday, the $6000 level was busted with momentum. Today, $7000 - and up to $7400. The price surge did take the cryptocurrency above a topside trend line on the 5-minute chart - around $7100).
Since then, however, the price has rotated back lower.... twice. The first dip moved to $6769. The more recent low reached $6830. Those lows did stay above a lower trend line on the 5-minute chart (see red numbered circles). That trend line currently cuts across at $6829 (and moving higher). That trend line is a downside target. A move below is more bearish. Stay above keeps the buyers more in charge.
The move lower in the cryptocurrency also fell below the 100 and 200 bar MA on the 5-minute chart (blue and green lines). The slopes of those lines have started to turn over (at least the 100 bar MA - blue line). That might help to keep a lid on the pair. Stay below would keep the bears more in control. Move above, and don't mess with it.
It is ok to sell/take profit when the bias turns negative (i.e below the MAs, below trend lines) but if those technical clues are reversed and the price starts to trade back above the broken tools, do not ignore. Many a seller - so far - have simply seen the price squeeze back higher.
As mentioned in previous posts, trading the crytocurrency requires paying attention to the technicals. The volatility is just too great. So the smart traders out there in cryptotrading, will tend to define and limit risk against key technical levels. To ignore the clues opens yourself up to potentially big swings.
So be careful. Be disciplined and listen to what "the market" is saying
