BTCUSD - Bitcoin
The BTC to GBP price action continues the recovery with the second day of gains, following the selloff seen on Monday and Tuesday.
The earlier selloff in the week was prompted by risk aversion following the Evergrande Group’s liquidity crisis. However, the company was allowed to restructure its debt repayment late Wednesday, which prompted a return to risky sentiment and recovery in cryptocurrency prices.
The BTC to GBP rate has climbed 1.87%, which allows the pair to cross the 32,000 price mark as bulls aim to hit the next resistance at 34036.
The selloff that occurred within the week completed the bearish pennant pattern on the daily chart. Price bounced from the completion point and cleared the 31980 resistance, turning this level into new support. The BTC to GBP price outlook allows for a potential move towards 34036 if the break above 31980 is sustained. 36306 is an additional price target to the north if the advance continues.
On the flip side, a lack of buying momentum puts the 31980 price mark under threat. If bulls are unable to defend this price mark,
29160 becomes a new downside target. 27067 and 26084 are additional downside targets that only come into the picture if the bears drive a decline below 29160.