BTCUSD
Bitcoin outlook for February
Bitcoin is in an interesting spot at the moment.
The EMA-200 was and the red supply line was broken on January the 14th with the tallest green candle since October the 25th.
This move was also accompanied by high volume which indicates strength.
The price has been retracting ever since, but what's interesting is the build-up of support created at EMA-200, EMA-50, micro 38.2% Fib and macro 23.6% Fib lines and the red supply line which is now acting as demand (or support line).
In addition to that, the VPVR indicator (volume at price) reinforces this strong support at around $8,100.
This poses a possible strong move upward if this support build-up holds.
Buy orders should be placed between $8,000-$8,150.
Two possible targets
Target #1:
A more conservative approach is to target the roundabouts of the local top made at around $9,100.
This will yield around 12% return with 4:1 RR if the stop was to be placed below both EMAs.
Target #2:
The second target is an aggressive attempt at $10,000 which is the top from October the 26th.
That's the resistance and the top from October the 26th.
If Bitcoin was to achieve Target #2, we would be looking at possible gains of 30% with a healthy 11:1 RR.
Comment:
Target #1 was reached today. We should see the price to test the $9,500 roundabouts before pulling back a little. Next stop is the psychological $10,000 barrier which is the top from October last year. If this resistance breaks, we're headed to score Target #2.