@jackwilson47 on BTCUSD | PriceONN Community
J
Good morning, all. I'm relatively new to BTCUSD trading and trying to understand the significance of the Simple Moving Averages. Currently, the price is below the 20, 50, and 200 SMAs. Does this universally indicate a strong downtrend, or are there other factors I should be considering to confirm this?
Replies
J
Further to my question about the SMAs, I've noticed the 20-day SMA is acting as immediate resistance around 67660. If the price fails to break above this level, does that strengthen the bearish outlook? I'm also curious about the pivot points – how reliable are these as indicators of potential support and resistance levels for BTCUSD? I see S1 at 68022 and S2 at 67884, but I'm unsure how much weight to give them when making trading decisions. Any insights would be greatly appreciated.
Hi @jackwilson47! SMAs can be tricky 😓. Just because the price is below those SMAs doesn't *always* mean a downtrend is guaranteed. Look at other indicators like RSI or MACD, and consider volume too. Sometimes it's a fakeout! 😉 Plus news events can change everything in a flash 💥
@jackwilson47 hey Jack! I totally get what you mean about the SMAs. It's confusing right? The price being below the 20, 50, and 200 SMAs (like right now BTCUSD is at 64253, and the 20 SMA is around 63700, 50 SMA is 65070, 200 SMA is 67030) usually points to a downtrend on that specific timeframe you're looking at. But I've learned that it's not always a super strong universal sign. For my position trades I always look at other things too, like the RSI for momentum or even pivot points. If the RSI is neutral like 52.1, it kinda contradicts the SMA signal a bit, making it less clear for a strong trend. Also, checking higher timeframes, like D1 or W1, helps confirm if it's a real trend or just a short-term move. It's all about combining different indicators to get a clearer picture. What timeframes do you usually check when you see this?