- The buying demand of Bitcoin bulls has deflated in the last few days, however, it could be the price building a bullish rectangle pattern in BTC to GBP.
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.
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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.