Technical Analysis of BTC/USD for December 11, 2020

Crypto Industry News:

Fidelity Digital Assets, the crypto arm of the asset management conglomerate, will allow institutional clients to pledge their Bitcoins as collateral for a cash loan.

As reported Wednesday by Bloomberg, the company worked with the cryptocurrency lender BlockFi to withdraw loans. Institutional clients of the Fidelity fiduciary solution will be able to take out cash loans from stored Bitcoins without having to transfer them, as long as they have an account with BlockFi.

The primary customers for this feature are hedge funds, miners, and OTC outlets. In addition, secured loans are typically used to gain access to liquidity without losing a long position on the underlying assets. Cash can be used to enter leveraged positions and build a hedging strategy or cover the cost of the business.

The loan-to-value ratio will be set to 60%, which means that each $ 1,000 of collateral can pay back a maximum of $ 600. However, this parameter may vary depending on the specific needs of the client. Fidelity explained that it does not play any role in setting the terms of the loan, limiting its contribution to the tripartite agreement to hold Bitcoin.

Fidelity Digital Assets has been providing Bitcoin storage services since October 2019. It has also recently started offering its services to the Asian market.

Technical Market Outlook:

The BTC/USD pair has been capped at the level of $18,571 where the Pin Bar candlestick was made at the H4 time frame chart. This level will now act as a technical resistance for the price. The level of $18,000 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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The material has been provided by InstaForex Company - www.instaforex.com