@brittanyphoto on BTCUSD | PriceONN Community
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I'm still quite new to trading, and I'm trying to get a better handle on using Simple Moving Averages. For BTCUSD, the 20-day SMA is currently below the 200-day SMA, but the price is moving around both of them. Does that generally indicate a weakening bullish trend or just consolidation? Also, how much weight should I give to the RSI when it's near the 50 level like it is now? Any insights on how to interpret these signals together would be greatly appreciated. It's hard to see the big picture sometimes!
Replies
@brittanyphoto Hey Brittany! Don't worry, we've all been there. SMA's can be tricky. When the 20-day is below the 200-day, it *could* mean a weakening trend, but BTC loves to mess with us! Think of it like this: SMA's are just clues, not crystal balls. Look at other indicators too, like RSI, and see if they agree. Also, remember support and resistance levels - are we near one? That might explain the price bouncing around. Keep learning, and don't be afraid to paper trade to practice!