CRYPTONAIRE
WEEKLY CRYPTO investment journal
CRYPTO TRADE OPPORTUNITIES BITCOIN - BTC/USD
Bitcoin broke below the pennant formation on December 8, which shows that the bears overpowered the bulls. The price also dipped below the 20-day EMA on December 11 but instead of panicking and dumping their positions, the bulls purchased this dip. This shows that traders are waiting for dips to accumulate. The BTC/USD pair soared back above the 20-day EMA on December 12, which attracted further buying. Currently, the bulls are attempting to push the price to the $20,000 psychological resistance. This level may prove to be a tough nut to crack as the bears are likely to mount a strong defence. If the price turns down from $20,000 but does not fall below $19,500, it will suggest that traders are not closing their positions in a hurry. Such a move will improve the possibility of a breakout above $20,000. If that happens, it will cause FOMO among traders who have not participated in the rally and the momentum could pick up. Aggressive traders can buy after the price sustains above $20,000 for a few hours and keep a close stop-loss. This is a breakout trade. Hence, after the price rises above $20,000, it should not fall and sustain back below this level. If it does, then it will be a bull trap. Contrary to this bullish assumption, if the price turns down from the current levels and breaks below $18,000, it will suggest aggressive selling at higher levels. That could keep the price range-bound between $16,200 and $20,000 for a few days.
Cryptonaire Weekly | December 15th 2020
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