BTC to GBP Might Reach £7623 on Break to £7060

The buying demand of Bitcoin bulls has deflated in the last few days following the 43% gain from the December low in the BTC to GBP rate.

On January 6, 2020, I reported that BTC to GBP had carved out a month old inverse head and shoulders pattern. A few hours after my report, the price triggered the pattern, and reach the price target of £6974 on January 19.

Read our Best Trading Ideas for 2020.

However, the bullish trend in BTC to GBP has effectively stalled since January 14, and the price is oscillating between the £6512 low and £7060 high. If BTCGBP remains within this range in the next few days the price might have formed a small rectangle pattern with a target of £7623 on a break to the £7060. One can also derive a bearish targe with the same pattern, however, I prefer bullish scenarios only given that the overall trend is bullish since the December low of £4938, thus any price slides might be shallow. Beyond the £7623 target, the next major high and resistance level is the October 28 high of £7738.

If the price fails to take out the £7060 high and instead trades below the January 19 low of £6512 then the price might reach the £6250 level, and around this level, the bullish trend might resume as the multi-day trend is upwards in BTC to GBP above the January 10 low of £5876.64.

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