- Summary:
- BTC to GBP has recently broken resistance at the falling trend line, however, the cryptocurrency has also formed a head and shoulders pattern.
Bullish Bias: Break of Falling Trendline on BTC to GBP
On the 4-hour time frame, it can be seen that BTC to GBP recently broke resistance at the falling trend line. The cryptocurrency rose to 5,994.66 and traded past the falling trend line which becomes apparent when you connect the highs of March 7 and March 12. This suggests that there could be enough buyers in the market to push bitcoin price higher against the British pound. Under this assumption, the recent downtick on BTC to GBP is nothing more than just a pullback. By drawing the Fibonacci retracement tool from the low of March 16 to the high of March 20, we can see that the cryptocurrency is already testing the Fib levels. Reversal candles between 4,592.50 to 5,108.60 could mean that BTC to GBP may soon rally to its March 20 high at 5,994.66.
Read our Best Trading Ideas for 2020.
Bearish Bias: Head and Shoulders on the 1-hour Chart
On the other hand, the 1-hour time frame suggests that there is more downside potential on BTC to GBP. The cryptocurrency has recently made lower highs following a series of higher highs. Consequently, this has allowed for a head and shoulders pattern to form. This is widely considered as a bearish reversal pattern. With BTC to GBP already trading below the neckline, we could soon see the cryptocurrency fall to 4,250.00 and test its previous trend line for support.