Technical Analysis of BTC/USD for 03/04/2020:

Crypto Industry News:

With the rise of panic and uncertainty caused by the coronavirus, Egypt has become the latest country to limit withdrawals from banks. Individuals can now charge a maximum of $ 635 per day from their bank and only $ 317 from ATMs.

According to press reports, on Sunday the Egyptian central bank instructed banks around the country to apply temporary daily withdrawal and deposit limits. This movement aims to control inflation in the country and prevent citizens from accumulating cash during a pandemic.

The daily limit for individuals has been reduced to 10,000 Egyptian pounds in bank branches and 50,000 pounds for companies. Only companies that need to withdraw money to pay their employees will be exempted from the limits.

Restrictions appear after a wave of mass payments from banks in the country. Central bank governor Tarek Amer said on Sunday that 30 billion Egyptian pounds (1.91 billion dollars) had been removed from the banks over the past three weeks.

"It turned out that individuals withdraw money from banks, although they did not need them ... in the last three weeks they have paid 30 billion pounds. We want discipline. We live in society and we must think about others" - said the governor.

Registered coronavirus cases in Egypt are currently slightly less than 800. However, the national health service is not prepared for a mass epidemic. In addition, Egypt is prone to high inflation, which can further aggravate the crisis. This can reduce inventory and panic and keep prices down.

Technical Market Outlook:

The BTC/USD pair has rallied through the technical resistance zone located between the levels of $6,759 - $6,908 and made a new local high at the level of $7,212. Nevertheless, the overall rally has failed to continue and market has made a red Pin Bar candlestick pattern after the breakout. The rally was short-lived and currently the Bitcoin price has returned to the main channel area and is again trading below the red zone. If the bearish pressure will intensify, then the price might move even lower towards the technical support located at $6,568 or even towards the level of $6,271.

Weekly Pivot Points:

WR3 - $7,805

WR2 - $7,343

WR1 - $6,514

Weekly Pivot - $6,022

WS1 - $5,217

WS2 - $4,764

WS3 - $3,965

Trading Recommendations:

The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in Bitcoin and treat BTC as a digital gold. The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.

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