Technical Analysis of BTC/USD for December 3, 2020

Crypto Industry News:

The US dollar index plunged sharply, prolonging the 10-month loss streak that puts it at its lowest point since April 20. Reuters celebrated this with the headline: "The dollar plunges sharply on hopes for US stimulus; Bitcoin is reaching its all-time high. "

The article noted that the collapse coincided with reports of a second COVID relief discussed in Congress and the re-opening of negotiations between U.S. Treasury Secretary Steve Mnuchin and House Speaker Nancy Pelosi. The article contrasted the falling dollar with the rising price of Bitcoin, which recently briefly broke past highs.

"Looks like a 2024 headline." - noted Erik Voorhees, CEO of ShapeShift and longtime advocate of Bitcoin. "... But I think we should assume that it won't be one headline, but a lot in the years to come."

Some bitcoiners have compared the Reuters headline with the The Times headline embedded in Bitcoin's genesis block, "Chancellor on brink of second bailout for banks," noting the significance of the changes that have occurred since then.

Historically, Reuters is not known to have positive reports on Bitcoin. Paradoxically, last week the news agency published an article analyzing the probability of a hypothetical increase in Bitcoin's price to $ 100,000 by the end of 2021. A week earlier, a story appeared about how this year's "bubble" differs from the one in 2017.

Technical Market Outlook:

The BTC/USD pair had made a new all time high (ATH) at the level of $19,891, but then reversed quickly towards the level of $18,211, so the big Pin Bar candles was made at the H4 time frame chart. The market might be developing a triangle price pattern and any breakout from this pattern will determine the further BTC direction. The levels of $18,388, $18,000 and $17,644 will now act as a key technical support again. The momentum is still strong and positive, so the bulls have a chance to hit the level of $20,000 and then continue the up trend towards the new all time highs. Please notice, there is no indication of up trend termination on a daily, weekly and monthly time frame chart yet.

Weekly Pivot Points:

WR3 - $22,987

WR2 - $21,189

WR1 - $19,745

Weekly Pivot - $17,922

WS1 - $16,614

WS2 - $14,848

WS3 - $13,390

Trading Recommendations:

Bitcoin just 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.


The material has been provided by InstaForex Company -