Technical Analysis of BTC/USD for November 5, 2020

Crypto Industry Outlook:

On November 3, Whale Alert signaled huge BTC transfers. Someone has moved 69,369 BTC worth more than $ 1 billion towards an unknown address.

Soon after these reports, Elliptic analysts conducted a study on the bitcoin flow. It soon turned out that the transfers were most likely related to the infamous, now closed Silk Road marketplace. The fact that these BTCs haven't been touched since 2012 adds fuel to the fire.

The address from which the funds came out is quite known in the cryptocurrency environment. At the time BTC was taken from it, it was the fourth largest bitcoin address in history in terms of balance. Cyber criminals have repeatedly tried to get to this address - so far unsuccessfully. The wallet has remained dormant until today. The exception to the rule was only one case, when from this address, in 2015, 101 BTC was sent to the address docked on the BTC-e exchange.

Silk Road was founded by Ross Ulbricht. He was arrested as early as 2013. 174,000 BTC were confiscated by the FBI in this case. The fate of the remaining 614,000 BTC remained shrouded in secrecy.

Technical Market Outlook:

The BTC/USD pair has made another yearly high at the level of $14,317 (at the time of writing the article) as the presidential election in the USA are still not finished. The level of $14,351 is the Weekly Pivot Resistance. It is worth to notice, that the market conditions are extremely overbought on H4 and daily time frame, so a pull-back or correction might occur any time now. The nearest technical support is seen at the levels of $13,296 and $13,116. The key technical support is located at $12,625.

Weekly Pivot Points:

WR3 - $15,648

WR2 - $14,723

WR1 - $14,351

Weekly Pivot - $13,475

WS1 - $13,116

WS2 - $12,252

WS3 - $11,845

Trading Recommendations:

Bitcoin is trading at the yearly highs and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $14,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $10,000 is broken.

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