CRYPTONAIRE
WEEKLY CRYPTO investment journal
CRYPTO TRADE OPPORTUNITIES BITCOIN - BTC/USD
We had suggested traders close their remaining position in the previous analysis because we expected $17,200 to act as a stiff resistance. However, that did not happen. The bulls easily pushed the price above the $17,200 mark on November 17. Bitcoin reached a high of $18,980 on November 21, just shy of the all-time high at $19,891.99. The price formed a Doji candlestick pattern on November 21 and the bears attempted to start a correction on November 22, but the bulls aggressively purchased at lower levels. This suggests that bulls are accumulating on dips. However, the bears are defending the higher levels and that led to another Doji candlestick on November 23. This suggests indecision among the bulls and the bears about the next directional move. The upsloping moving averages and the RSI in the overbought zone suggest that bulls are in control. Hence, if the bulls can propel the price above $19,000, a rally to $20,000 is possible. This level is likely to act as a psychological barrier but if the bulls can drive the price above it, the momentum is likely to pick up and the BTC/USD pair could form a blow-off top, which is usually followed by a sharp correction. On the other hand, if the bears sink the price below $17,610.77, it would indicate the start of a correction that could reach the 20-day EMA. If the price rebounds off this level, the bulls will again try to propel the price to new all-time highs. However, if the 20-day EMA gives way, the pair could dip to the 38.2% Fibonacci retracement level at $15,752.91. We do not find any reliable setup at the current levels, hence, we are not suggesting a trade in it. Cryptonaire Weekly | November 24th 2020
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