CRYPTONAIRE
WEEKLY CRYPTO investment journal
CRYPTO TRADE OPPORTUNITIES BITCOIN - BTC/USD
Bitcoin bounced off the uptrend line on October 2 and formed a long tail on the candlestick, which shows strong buying by the bulls near the line. The bulls will now try to push the price above the overhead resistance at $11,200. If that happens, the BTC/USD pair could pick up momentum and rally to $12,486.61. Though there is a resistance at $12,086, we expect it to be crossed. However, the bears are unlikely to give up easily. They will try to stall the up-move at the 50-day SMA and again at $11,200. If the pair turns down from either level, a drop to the uptrend line is possible. The 20-day EMA is currently flat and the RSI is also near the midpoint, which suggests a balance between supply and demand. The price can move in either direction, hence, traders can remain on the sidelines until a decisive breakout happens. Traders can wait for a breakout above $11,200 to sustain for a few hours before buying with a stop below the uptrend line. Another possible trading opportunity might open up if the pair turns down from the current levels but rebounds off the uptrend line. Although this is an early entry, the trade has a good risk to reward ratio, hence, can be attempted.
Cryptonaire Weekly | October 6th 2020
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