Bitcoin BTC/USD ends the trading week at 8264 and continues to move as part of the correction and the formation of the «Head and Shoulders» reversal pattern. Moving averages indicate a downward trend that is nearing completion. Prices were able to break through the area between the signal lines up, which indicates strong pressure from buyers. At the moment, we should expect an attempt to continue the fall and test the support area near the level of 7585. Where again we should expect a rebound and continued growth of the Bitcoin rate with a potential target above the level of 12055.
Bitcoin Forecast and Analysis January 27 — 31, 2020
In favor of raising BTC/USD quotes in the current trading week January 27 — 31, 2020 a rebound from the upper border of the downward channel will be made. The second signal will be a rebound from the trend line on the relative strength index (RSI). Cancellation of the Bitcoin growth option will be a fall and a breakdown of the area of 6125. This will indicate a breakdown of the support area and a continued decline in BTC/USD with a potential target below the level of 4575. A confirmation of the development of the upward trend will be a breakdown of the resistance area and closing of quotations above 9905, which will indicate the completion of formation «Head and Shoulders» reversal pattern.
Bitcoin Forecast and Analysis January 27 — 31, 2020 suggests an attempt at the support area near the level of 7585. Then, the cryptocurrency will continue to grow to the area below the level of 12055. An additional signal in favor of the growth of the Bitcoin exchange rate will be the support line test on the relative strength index (RSI). Cancellation of the option to raise the Bitcoin cryptocurrency quotes will be a fall and a breakdown of the area of 6125. In this case, we should expect continued decline with a target at the level of 4575.
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