This is due to the
abruptness of trend reversals, so even periodic gains of 30 - 50 % would have been largely erased through a combination of abrupt initial losses and subsequent whipsaws.
Another way to identify more significant levels of support and resistance in
terms of trend reversals is based off previously established significant highs (peaks) and lows (valleys).
In
case of a trend reversal and Bitcoin price starts to gain, the 38.2 % Fib retracement level will act as resistance at the pivotal $ 8,500.
With Yen showing no signs
of a trend reversal, the economists are wondering the impact it would
At the same time RSI is forming a bullish divergence, that might be the first sign
of a trend reversal, or at the very least a correctional move up.
Technical traders use moving averages to gauge price action and signs
of trend reversals in the market.