Technical Analysis of BTC/USD for August 3, 2020:

Crypto Industry Outlook:

On Sunday Bitcoin and Ethereum fell 12% and 20% respectively in about 6 minutes during Flash Crash. Over $ 1 billion in positions have been liquidated.

According to Bybt market data, over 72,422 traders have liquidated in the last 24 hours. The largest single $ 10 million liquidation occurred on BitMEX. As Bitcoin and Ether marked new heights, many of the top 20 altcoins saw impressive gains. XRP grew 19.7%, Stellar Lumens (XLM) grew 13.25% and Dogecoin (DOGE) 12.93%.

According to CoinMarketCap, the total cryptocurrency market capitalization currently stands at $ 338.3 billion. Bitcoin's domination index is 61.5%.

Technical Market Outlook:

The BTC/USD pair has dropped from $12,035 to $10,494 during the Flash Crash and then bounced to the level of $11,317. The level of $12.035 is the new yearly ATH, so the market sentiment is clearly bullish. Currently, the market trades around the level of $11,000 in a narrow zone located between the levels of $10,895 - $11,317. Any violation of either of those levels will indicated a possible direction for the nearest future. Please notice the neutral momentum that support the sideways view for the market during the next 24 hours.

Weekly Pivot Points:

WR3 - $14,325

WR2 - $13,003

WR1 - $12,116

Weekly Pivot - $10,976

WS1 - $9,784

WS2 - $8,681

WS3 - $7,717

Trading Recommendations:

Due to the level of $12,000 violation, the Bitcoin is now in the up trend on the long-term time frame. The next target for bulls is seen at the level of $13,712 and $15,000. The key long-term technical support is located at the level of $7,897, but the zone around $9,500 - $10,500 is an important technical support as well.

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