CRYPTONAIRE
WEEKLY CRYPTO investment journal
CRYPTO TRADE OPPORTUNITIES BITCOIN - BTC/USD
Bitcoin has formed a pennant near the highs, which is a reliable continuation pattern. If the bulls can push the price above the pennant decisively, the next leg of the uptrend could begin. The $20,000 level may act as a psychological resistance but the possibility of a break above is high. Several traders have not participated in the current rally as they have been waiting on the sidelines to buy on any major dip. However, the market does not oblige what most people expect. If the price rallies above $20,000, several traders may give up and buy at higher levels because they will fear missing out on the rally. That may result in a vertical rally to $25,000 in the short term. If that happens, the BTC/USD pair may form a short-term or a medium-term top. Traders can try to ride this rally by buying after the price sustains above $20,000 for a few hours. This is a risky trade, hence, keep a close stop-loss and trail the stops higher as the price moves northwards. Do not wait for a windfall because the markets can turn around in a jiffy and turn the profit into a loss. Contrary to the bullish assumption, if the price turns down from the current levels and breaks below the 20-day EMA, it will suggest profit booking by the momentum traders. Such a move could drag the price down to $16,200.
Cryptonaire Weekly | December 8th 2020
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