Technical Analysis of BTC/USD for December 10, 2020

Crypto Industry News:

Representative of JPMorgan Chase & Co. Recently stated that bitcoin adoption among institutional investors has only just begun, while for gold its adoption by institutional investors is well advanced.

It has been calculated that only 0.18% of JP Morgan's assets are in bitcoin and 3.3% in gold. JPM suggests that some of this gold may end up in bitcoin. Strategists add that bitcoin's growth is at the expense of gold. Morgan Stanley's chief global strategist, Ruchir Sharma, however, says Bitcoin's rise is more tied to the dollar:

"Printing of the money is likely to continue even after the pandemic is over," Sharma said in a news article. "Trusted or not, bitcoin will benefit from increased distrust of traditional alternatives."

"Don't assume that your traditional currencies are the only store of value or medium of exchange that people will ever trust. Tech-savvy people are likely to continue looking for alternatives until they find or invent them. And intervention to regulate the digital currency boom, which some governments are already considering, can only accelerate this populist revolt, "he says.

Research has shown that another reason for bitcoin's growth is simply because it is a brand new, uncorrelated asset. The May halving of the cryptocurrency king's network also contributed to this, the market capitalization of which has literally increased from zero to $ 560 billion in the last 12 years. These things don't usually last 12 years, so there are good reasons for that.

Technical Market Outlook:

The BTC/USD pair has dropped to the level of $17,682 where the Pin Bar candlestick was made at the H4 time frame chart and the market was able to bounce a little. The bounce has made a local high at the level of $18,578, so just a little above the technical resistance seen at the level of $18,444. The level of 418,000 is still a valid technical support and any further violation of this level will open the road to the level of $17,579 and $17,000. Please notice the market is finally coming off the extremely overbought conditions as well and the momentum is now weak and negative.

Weekly Pivot Points:

WR3 - $21,987

WR2 - $20,958

WR1 - $20,107

Weekly Pivot - $19,077

WS1 - $18,325

WS2 - $17,164

WS3 - $16,350

Trading Recommendations:

Bitcoin made a new ATH 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 $20,000, 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 $15,000 is broken.

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