⭕ After a massive sell-off earlier this year, the cryptocurrencies are trying to pull back. Among the top coins, Litecoin has garnered all the attention with favorable news and an upcoming fork on Feb. 18.
At the same time, Western Union, one of the oldest money transfer companies, has confirmed it is testing Ripple’s Blockchain-based settlement system.
George Soros, who had earlier referred to cryptocurrencies... Mehr anzeigen as a “typical bubble” has invested in Overstock, through his investment fund. Overstock is one of the most pro-cryptocurrencies businesses, and its stock price has appreciated immensely as the cryptocurrencies skyrocketed.
This shows that the mainstream businesses are slowly recognizing the value of blockchain technology.
However, a few old-timers are still skeptical of cryptocurrencies and the latest to voice his opinion is Berkshire Hathaway vice chairman Charlie Munger, who called Bitcoin “totally asinine.”
Nevertheless, as traders, if an asset class offers us an opportunity, we take it. Let’s see if we find some interesting plays today.⭕
Our recommendation of a long position in Bitcoin triggered on Feb. 15. Traders, who follow us, would have entered their positions between $9,500 and $9,700. We had anticipated that once the cryptocurrency broke out of the overhead resistance, it would rally towards the 50-day SMA. But the price action above $9,500 has not been encouraging
We prefer breakouts that quickly gain momentum once they clear a resistance area. In this case, the BTC/USD pair is facing selling pressure at the resistance line, as shown in the chart.
If the cryptocurrency holds the $9,500 levels and breaks out of the resistance line, it is likely to continue trading inside the ascending channel and reach the 50-day SMA, where traders can book profits on 50 percent of their positions and hold the rest with a trailing stop loss for a target of about $12,500.
Bitcoin is at risk of a bear attack as long as it trades inside the descending channel. Therefore, we want to reduce our risk. We recommend raising the stop loss on 50 percent positions to $8,600 and keeping the rest at the previously mentioned level of $7,800.📈 📈