Bitcoin Trend Reversal Signal
The price bounced from 6200.00 level. RSI confirmed price reversal. MACD supports downward movement. But the main signal, that we have to take into consideration, should be abearish divergence.
This is a strong trend reversal signal. We must be ready to see further downward movement at least to SMA100. This Moving Average can stop and reverse the market. From this zone we can get a new buy signal. But if the price breaks this strong support line, the market will be able to fall to 5000.00 support zone .
It will be logical, because the market is overbought and it will need to correct the previous strong upward movement. If we talk about any other market, this trend reversal signal could be a good trading opportunity. But Bitcoin is too cool and it can jump above 6200.00 and move to 6500.00-7000.00 levels based on fundamental news and support from the buyers.
Don't forget about it and be ready to act based on the price action near important levels like 6200.00, 6000.00, 5500.00, 5000.00 and SMA100. When the market gives clear trading signals, I will write how to trade in these zones.