CRYPTONAIRE
WEEKLY CRYPTO investment journal
CRYPTO TRADE OPPORTUNITIES BITCOIN - BTC/GBP
Bitcoin witnessed frenzied buying on January 29, which pushed the price above the downtrend line, resulting in a short squeeze that drove the price to £28,000. However, the bulls could not hold on to the breakout and the price gave back a large part of its gains and re-entered the triangle on the same day. The BTC/GBP pair has been clinging to the downtrend line for the past four days, which is usually a positive sign. If the bulls can propel and sustain the price above the downtrend line, the pair may again rally to £28,000 and then to £30,000. A break above the £30,936 could resume the uptrend, but we give it a low probability of occurring at this juncture. The 20-day EMA has flattened out and the RSI is near the midpoint, which suggests a few days of range-bound action. The first sign of weakness will be a break below the 50-day SMA. If that happens, the pair could drop to the £21,000 support. This is an important level to watch out for because, if this cracks, a deeper correction could start. We do not find a reliable buy setup and the indicators are also not pointing to a clear advantage to the bulls. Therefore, we are not proposing a trade in it.
Cryptonaire Weekly | February 2nd 2021
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