CRYPTONAIRE
WEEKLY CRYPTO investment journal
CRYPTO TRADE OPPORTUNITIES BITCOIN - BTC/GBP
Bitcoin surprised us with the sharp rally in the past few days. It broke and closed above the downtrend line on February 2, which invalidated the bearish descending triangle pattern.The failure of a bearish pattern is a bullish sign as it traps several aggressive bulls who then hurry to close their short positions. The BTC/GBP pair attempted to break above the all-time high on February 6 but failed. However, the positive news flow on February 8 attracted huge buying from the bulls and short covering from the bears who may have opened short positions near the all-time high. The pair could now rally to £40,872 and if that level is also crossed the uptrend could reach £44,424.35. However, it is unlikely to be a straight dash to the target objective. The price is likely to turn down and retest the breakout level at £30,936. If the bulls can flip this level to support, it will increase the possibility of the resumption of the uptrend.On the other hand, if the bears sink the price below £30,936, a drop to the 20-day EMA is possible. A strong rebound off this support will suggest that traders continue to buy on dips. However, a break below the 20-day EMA will suggest the bullish momentum has weakened. A short-term buying opportunity may open up if the pair rebounds off £30,936, but the risk is high. Therefore, we are not proposing any fresh long positions for swing traders. Cryptonaire Weekly | February 9th 2021
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