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BITCOIN broke below its 1D MA50 after 2 months! What's next?

In-depth analysis of the trending trading setup: BITCOIN broke below its 1D MA50 after 2 months! What's next?. Learn entry rules, stop loss placement, and risk management.

Published by TradeYouLike Research Team • Technical Analysis & Strategy

BITCOIN broke below its 1D MA50 after 2 months! What's next?

Social media has been highlighting this trading setup. Here's a detailed breakdown of the core mechanics, separated from the hype.

Strategy Overview

Bitcoin (BTCUSD) just broke below its 1D MA50 (blue trend-line) for the first time in almost 2 months (since August 19). During the last Bull Cycle (2023 - 2025), every time BTC broke below its 1D MA50, it made a rather standard short-term correction of around -20%. In fact the weakest it registered was -20.39% and the strongest -31.96%. As a result, it won't be unlikely to see the price now pulling back by -20.39%and hitting $70000 before it bottoms and resumes the bullish trend. Notice how su

Key Trading Rules

  • Entry: Look for clear reversal patterns (engulfing, pin bar) at key support/resistance levels
  • Stop Loss: Always place behind structural swing high or low. Risk only 1-2% per trade
  • Target: Next key level or minimum 1.5x your risk

Conclusion: While this strategy has strong momentum, execution requires discipline, emotional control, and strict risk management.