The BTC/GBP pair has broken below the critical support at £23,620 today. This opens the door for a drop to the £21,000 to £20,000 support zone. We had warned that Bitcoin could face selling near the 20-day exponential moving average and that is what happened. The bulls tried to push the price above the 20-day EMA on September 24 and again on September 27 but failed. However, a minor positive is that bulls have successfully defended the 100-day simple moving average for the past few days. However, the long wick on the January 3 candlestick and the long tail on the January 4 candlestick shows traders are booking profits at higher levels and buying on dips.

The failure to make a new all-time high could have attracted profit-booking from short-term traders, which has pulled the price below the 20-day EMA. In an uptrend, when the price breaks below the 20-day EMA, it is a sign that the bullish momentum may be waning. Bitcoin price gbp broke above the overhead resistance of £44,238 on April 12 and 13, but the bulls have not been able to sustain the breakout. However, the positive sign is that the bulls have not given up much ground, which shows that traders are not closing their positions in a hurry. The upsloping 20-day EMA and the RSI above 62 suggest advantage to the bulls.

This could have attracted sharp buying from the bulls and short covering from the bears who went short below £38,355. The BTC price GBP rose back above the 20-day EMA on March 26, indicating the breakdown was a bear trap. If they can sustain the breakout, the pair may retest the all-time high at £44,238. Bitcoin price GBP slipped and closed below the £36,777 support on April 24 but the bears could not extend the decline to £31,005. The price reversed direction from £33,705.58 on April 25 and soared back above £36,777 on April 26.

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Traders who bought on our recommendation may book partial profits and trail the stops higher on the rest of the position. The bears are currently attempting to stall the up-move at the overhead resistance at £42,653.53 but a positive sign is that bulls are not giving up much ground. This suggests that traders are not booking profits in a hurry and increases the possibility of a break above it. The failure of the bulls to push Bitcoin above the 20-day exponential moving average between November 29 to December 1 showed that bears are defending this level aggressively. Bitcoin price GBP as we had mentioned in our previous analysis, Bitcoin hit our first target objective at £40,872 on February 21.

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• If the Bitcoin price GBP breaks the 50-day SMA, it will signal a possible trend reversal.
• If the price turns down from this overhead resistance zone, the bears will try to resume the down move.
• Instead of breaking above the downtrend line, if the bears sink the price below the 20-day EMA, the pair could drop to £24,000 and then to the 50-day SMA at £20,197.
• Usually, deeply oversold levels are followed by a minor relief rally or consolidation.

Platinum has been providing trading education for over 5 years and is perfectly poised to support you in your quest to becoming a Cryptonaire. If that happens, the pair may start its northward march to £42,653.53 and then retest the all-time high at £47,240.05. The 20-day EMA is gradually flattening out and the relative strength index has dropped below 57, indicating that the bullish momentum may be weakening. From a technical view this is backed up by the resistance and supply levels on the Fib retracements, with double confluence at the 61.8 level and MA’s. If the next dip holds above £26,000, it may signal that a bottom is in place.

If they succeed, the pair could plummet to the 50-day simple moving average . The bulls defended the 20-day exponential moving average on November 12 but higher levels again attracted selling by the bears. The BTC/GBP pair turned down on November 15 and the bears have pulled the price below the 20-day EMA today. Bitcoin has been finding support at the 200-day simple moving average for the past few days but is struggling to sustain the rebound.

If that happens, several short-term traders may book profits, dragging the pair down to the 50-day simple moving average . On the other hand, a break and close below £48,426.53 will be the first indication that traders are booking profits at higher levels. The bears will have to pull the price below this support to signal that the bullish momentum has weakened. If the pair closes below the 20-day EMA, the possibility of a decline to the 50-day simple moving average increases. The negative divergence on the relative strength index also points that the bullish momentum may be weakening.

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The bullish momentum could pick up if bulls clear this overhead hurdle. The pair may then challenge the £48,426.53 to £51,000 resistance zone. A break and close below £24,450 could open the doors for a possible drop to £21,462.10. We had mentioned in our previous analysis that Bitcoin is likely to face stiff resistance in the zone between £32,382.23 and £34,031.76 and that is what happened. A cryptocurrency calculator that displays the total worth of all your coins in pounds, euros, dollars and bitcoin.