Trading Signals for BITCOIN for January 30-31: buy above $81,250 (21 SMA - 5/8 Murray)

[Ben Graham]

Bitcoin is trading around $83,037, rebounding after reaching the 5/8 Murray located at $81,250. Since January 10, Bitcoin has been moving within a downtrend channel.

In recent sessions, BTC has attempted to break through the top of this channel and the 200 EMA, which acted as resistance, pushing Bitcoin down to the $81,000 level.

Bitcoin could recover from its losses if it consolidates above $81,250 in the coming hours. Any pullback could be seen as an opportunity to open long positions with a target at the 21 SMA around $87,000.

Given that the global sentiment is becoming increasingly cautious for investors, Bitcoin is likely to continue to suffer in the short term, and we could expect it to fall towards the 4/8 Murray located at $75,000.

A break below $81,250 and below the downtrend channel could accelerate this decline, and we could expect BTC to reach $75,000 and even the psychological level of $70,000.

The medium-term outlook could remain negative for Bitcoin if, in the coming hours or days, Bitcoin recoups some of its losses and approaches the strong resistance of the 6/8 Murray located at $87,500. This area will allow traders to open short positions with targets at $85,000 and $81,200.

The material has been provided by InstaForex Company - www.instaforex.com