The trend is still down, but keep an eye on the 4-hour SMA(20). If it breaks above that level (currently around $36.5k) it may start looking more constructive.
Note
What was once resistance becomes support.
Now that the 4-hour SMA(20) has been broken to the upside, this may be the beginning of a recovery. What we see here is a re-test of the SMA(20) as support. If this level holds, this should provide a floor for the drawdown and, as time goes on, give investors confidence to re-enter the market.
Note
It's really getting tight in there though. As the SMA(50) converges from above and the SMA(20) converges from below, the price will be pinched and be forced to choose a direction.It should happen in the next few days.
Note
We finally have our answer. A close above the 4-hour SMA(50) is a bullish sign and the mean reversion back to the SMA(200) could be a powerful move.
If price moves back below the 4-hour SMA(50) and SMA(20), it would be time to start getting defensive again.
Note
Price has drifted below the 4-hour SMA(20) intra-day, but there are still signs of hope. The 4-hour chart is starting to put in higher-highs and higher-lows, so the trend still looks up.
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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.