Technical analysis of BTC/USD for 16/01/2020:

Crypto Industry News:

The form from January 14 submitted by the US Securities and Exchange Commission (SEC) confirms that Bitwise Asset Management has demanded to withdraw its application for the Bitcoin ETF. This is the second major ETF withdrawal in recent months after similar VanEck activities.

Bitwise submitted an application for ETF registration in January 2019. In March of the same year, he published the Bitwise Report on the stock volume, claiming that 95% of the trading volume was fabricated. The findings were used by the company as an argument for the SEC to accept the ETF. Apart from most of the volume, the company maintained that BTC prices were mainly on regulated exchanges.

The reasoning did not convince the committee, which rejected the offer in October 2019. However, a month later the regulator decided to revise its decision.

This is another step towards our long-term goal of introducing Bitcoin ETFs to the market, and Bitwise plans to resubmit the application in a timely manner.

Technical Market Overview:

Despite the Shooting Star candlestick pattern made at the top of the wave up at the level of $8,836, the Bitcoin bulls are still making pressure in the price. The local technical support has been tested already. Please notice, that this high was made on lower momentum than the previous one, so there is a negative divergence present. Before, the pair har tested the technical support located at the level of $7,601 - $7,581 and bounced higher, which means, the support had been recognized by the market participants as valid and they wanted to resume the recent uptrend. Moreover, there is no possibility to move lower at the price of Bitcoin unless the support is clearly violated.

Weekly Pivot Points:

WR3 - $9,744

WR2 - $9,058

WR1 - $8,561

Weekly Pivot - $7,905

WS1 - $7,428

WS2 - $6,754

WS3 - $6,270

Trading Recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. There is a possibility that the wave 2 corrective cycles are completed, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation.

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