Bitcoin How to Trade

The price dropped to a possible reversal zone. This zone if formed by 0.382 Fib level, the uptrend line and SMA100. We should be ready to see a price reversal with further upward movement to 20000.00 resistance level. There are at least 2 reasons to think that the price can bounce from this zone. The zone is strong and RSI is in the oversold zone. Long positions should be opened only based on a confirmed reversal signal.

Alternative variant: the price breaks this zone and falls lower. MACD and DMI confirms further downward movement. The 1st support zone was tested by the market in the previous month. Now it also can be considered as the possible reversal zone. If the price breaks it too, the 2nd support zone will be a target for downward movement. Long positions should be opened from these support zones also based on confirmed reversal signals.