Bitcoin trading: Momentum strategies with different moving averages
The 20-Day moving average strategy provided good returns in 2018 and 2019, while the 50-Day MA strategy did better in 2021 and 2022. One of the simplest strategies for trading cryptocurrencies involves the application of moving averages (MA). The basic premise is that if the price of an asset is above its moving average for a certain number of days, this is considered a buy signal. Once it falls below its moving average, the asset is sold, and a cash position is maintained until the price crosses the moving average again in the upper direction.Cointelegraph Consulting’s latest bi-weekly....
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Bitcoin Price Key Highlights. Bitcoin price has slowly been gaining ground against the U. S. dollar, thanks to weaker expectations of a Fed interest rate hike before the end of the year. Price is moving inside an ascending channel forming on the longer-term time frames, suggesting that bullish momentum is just getting started. Bitcoin price is stalling at an area of interest near the moving averages but might be able to sustain its upside momentum after bouncing off the channel support. Resistance at $280. Price is currently testing resistance near $280, as this lines up with the dynamic....
Litecoin has been bearish this week after failing to push above 1.72. The 1H chart shows ltcusd declining within a falling channel. Litecoin (LTCUSD) 1H Chart April 9th. Also, we can see that price is now trading under the cluster of 200-, 100-, and 50-hour simple moving averages (SMAs). This represents bearish bias. However, the moving averages have been moving sideways, which means there is no prevailing downtrend in the 1H chart and this week's downswing could still be part of a sideways market. If price pulls back but holds under the 1.67-1.68 area, then we would have more evidence....
Bitcoin price broke below its triangle support to indicate that the selloff isn’t over yet. Bitcoin Price Key Highlights. Bitcoin price was trading inside an ascending triangle pattern as illustrated in a previous article. Price broke below support, indicating a pickup in bearish momentum and a likely drop to the triangle lows around $580. Technical indicators are also suggesting that further declines are possible. Technical Indicators Signals. The 100 SMA is below the 200 SMA so the path of least resistance is still to the downside. In addition, these moving averages held as dynamic....
Ethereum continues on its upward journey although not without its fair share of bumps along the way. Nevertheless, the digital asset still remains one of the most promising in the crypto space and has demonstrated that with its recent recovery. But even after successfully landing above $3,000, the cryptocurrency still remains a long way from its all-time high of almost $5,000. However, the long-term indicators paint a favorable picture for Ethereum. Beating Moving Averages For the longest time following the December crash, the price of Ethereum had traded below important moving averages....
Bitcoin price has exhibited strong bearish momentum but is in the middle of a retracement from its sharp downside move. Bitcoin Price Key Highlights. Bitcoin price made a strong bounce after its sharp drop, reflecting a correction for sellers. Price could pull up to the broken consolidation support or to the moving averages before resuming its drop. The recent hack on a bitcoin exchange in Hong Kong has put downside pressure on prices. Technical Indicators Signals. The 100 SMA is below the longer-term 200 SMA, signifying that the path of least resistance is to the downside and that further....