Technical Analysis of BTC/USD for December 30, 2020

Crypto Industry News:

Binance will expand its cryptocurrency trading directory by introducing European Bitcoin Options Contracts.

The launch announced today follows a successful trial in November. The press release also shows that the new options contract will be priced and settled in Tether.

According to Binance, the debut of the new product took place due to the growing appetite for BTC options. In early December, Bitcoin options surpassed $ 1 billion for the first time, with total open interest reaching nearly $ 6 billion. Commenting on the launch, Binance CEO Changpeng Zhao noted that Bitcoin's recent $ 28,000 hit highlighted the growing level of investment in the crypto space.

"The growth of the cryptocurrency industry can largely be attributed to a combination of factors, including broader public education and institutional interest, innovation in DeFi protocols and smart contracts, and the development of a solid derivatives market," he added.

In April, Binance joined a growing number of exchanges introducing Bitcoin options trading by launching American-style BTC options contracts. The main difference between the US and European format is that traders can only use the latter after the contract expires.

The previous iteration of Bitcoin Options on Binance has been criticized for being one-sided as users were unable to "write" options and reap bonuses. Consequently, Binance options were generally more expensive due to the inability to conduct arbitrage.

Technical Market Outlook:

The BTC/USD pair has made a new ATH at the level of $28,526 (at the time of writing the article), so the up trend is continued. The local low during the pull-back was made at the level of $25,801, but there is no sign of a trend reversal and the next target for bulls is seen at the level of $30,000. The intraday support is seen at the levels of $28,000 and $28,186. The strong and positive momentum supports the short-term bullish outlook for Bitcoin. Moreover, the market still trades above the short-term trend line support (market orange on chart).

Weekly Pivot Points:

WR3 - $35,468

WR2 - $31,807

WR1 - $29,313

Weekly Pivot - $25,209

WS1 - $23,706

WS2 - $19,294

WS3 - $16,598

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 $20,000 is clearly broken.

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