The financial world seems not to have made up its mind yet about cryptocurrencies.
Paul Singer, founder of investment management firm Elliott Management called cryptos “one of the most brilliant scams in history” whereas Tim Draper, a prominent venture capital investor, has held on to his Bitcoin, and, when asked if he is going to sell them, said: “Why would I sell the future for the past”.
Meanwhile major exchanges Coinbase and Bitfinex are aiming to implement the Segregated Witness (SegWit) scalability upgrade into their systems, which will significantly cut fees and transaction time for the users.
Will this news turn out to be bullish for Bitcoin and the other top digital currencies? Let’s find out.
Yesterday, February 20, Bitcoin reached our second target objective when it met the resistance line of the descending channel. Traders following us should have sold out their positions around $12,000. What should they do now?
The BTC/USD pair has almost doubled from its recent lows, therefore some profit booking is to be expected at the current levels. However, it remains bullish as long as it trades inside the ascending channel.
If the bears break down below the support line of the ascending channel, a fall towards the 20-day EMA at $10,000 and below that to the horizontal support line at $9,500 is possible.
Our bearish view will be invalidated if the cryptocurrency breaks out of $12,200 and rallies towards $13,000.