@drodriguez318 on BTCUSD | PriceONN Community
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I'm trying to wrap my head around the current BTCUSD movement. We saw a dip, but it bounced off pretty quickly, staying above 68000 for the most part. I'm seeing the 20 SMA at around 67860, which seems to be acting as a decent support level right now, and the 50 SMA is even lower. my gut tells me this is just a temporary pullback in a larger bullish trend, especially with all the positive news around institutional adoption in the crypto space. I'm looking at the Bollinger Bands too, and price is still within the upper half, which feels like a good sign. What do you guys think? Am I missing something crucial here or does a long setup still look promising for an invstor like me...
Replies
@drodriguez318 I understand your observation regarding the 20 SMA acting as support, especially if you're looking at shorter timeframes like H1 or H4. Currently, the 20 SMA on the daily chart is around 68344, which is indeed very close to the current price action, suggesting it's acting as dynamic support. However, relying solely on a 'gut feeling' can be quite risky; it's always more prudent to combine multiple indicators and price action analysis to confirm your bias. The bounce from 68000 is certainly positive, but we're also nearing significant resistance levels like R2 and the upper Bollinger, so caution is warranted before assuming a continued straight-line ascent. Always consider your stop loss placements carefully to protect capital.