CRYPTONAIRE
WEEKLY CRYPTO investment journal
CRYPTO TRADE OPPORTUNITIES BITCOIN - BTC/USD
As we had mentioned in the previous analysis, the bears attempt to fake almost every breakout. They did just that when they dragged Bitcoin back below the $12,134.29 support on August 18. Although the bulls held the first dip to the 20-day EMA on August 19, they could not sustain the bounce, which suggests a lack of buyers at higher levels. On August 21, the BTC to USD pair hit our suggested stop-loss at $11,500. The 20-day EMA has flattened out and the RSI has dropped close to the midpoint, which suggests a balance between supply and demand. This could result in a few days of range-bound action. On the downside, if the bears can sustain the price below the 20-day EMA, a drop to the $10,900$11,100 support zone is possible. The bulls will defend this zone aggressively but if the bears break it, the decline can extend to $10,500. The resistance of the range is $12,134.29 and above it $12,486.61. However, as the support of the possible range is still not established, traders should wait on the sidelines . There are two possible trading opportunities. If the pair bounces off $10,900 or $10,500, traders can buy a small position and expect the price to move up to $12,134.29. Another opportunity will arise if the price soars from the current levels and closes above the overhead resistance. Such a move will suggest a pick up in momentum and can be traded with a close stop-loss. Cryptonaire Weekly | August 25th 2020
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