Technical Analysis of BTC/USD for December 18, 2020

Crypto Industry News:

Both Binance and Coinbase had technical problems yesterday - the same day Bitcoin first broke the $ 20,000 mark. Binance linked its problems to the number of people browsing the stock exchange.

Changpeng Zhao, aka CZ, CEO of Binance, wrote on Twitter:

" #Bitcoin just jumped. There were scaling problems. It should work for now. Underestimated demand. We're still adding MUCH more 'servers'. "

CZ posted another update about half an hour later, revealing improvements as well as a drastic increase in the number of users on the platform. "There are still lag issues here and there. We're working on it, everyone on board, "he wrote on Twitter, adding:" Bitcoin is up 5%, traffic is up 30 times. By 14:56 UTC the situation had been resolved.

Bitcoin surpassed $ 20,000 for the first time on December 16 at 13:42 UTC, reaching close to $ 20,800 by 14:14. At 14:45 UTC, Coinbase also reported issues via its status page. "Coinbase.com is having connectivity issues," the exchange said. The issue was fixed at 4:27 PM.

Coinbase has a history of technical issues during periods of heavy traffic, often citing "connectivity issues" as the cause.

Technical Market Outlook:

The BTC/USD pair has made the new ATH at the level of $23,581, so the up trend is being continued. The market is consolidating the recent gains in a narrow zone after the three Pin Bar candles were made around the recent ATH. The nearest technical support is seen at the level of $22,000 and the next technical resistance (and target) is located at $24,000. The momentum is strong and positive, so the higher time frame trend remains up, but breakout below the level of $22,000 will open the road towards the next technical support seen at $21,000.

Weekly Pivot Points:

WR3 - $21,188

WR2 - $20,624

WR1 - $20.024

Weekly Pivot - $18,707

WS1 - $18,177

WS2 - $16,940

WS3 - $16,341

Trading Recommendations:

Bitcoin made another 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 $30,000, 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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