Technical Analysis of BTC/USD for December 9, 2020

Crypto Industry News:

Speaking at the Singapore Fintech Festival 2020, Cameron and Tyler Winklevoss confirmed previous forecasts that Bitcoin's price will eventually exceed $ 500,000 for Bitcoin.

The twins noted that their $ 500,000 prediction is based on the assumption that Bitcoin's market capitalization will increase 40-fold to surpass gold's future market cap of around $ 9 trillion.

Cameron highlighted the "tremendous amount of money printing" in the debt and fiat regimes and concerns about inflation and the resulting increase in demand for "hard assets" such as gold and Bitcoin.

Cameron claims that Bitcoin offers significant advantages over gold as a money commodity, such as ease of transfer and resistance to external forces affecting its production rate.

Despite the optimistic outlook, the twins noted that the cryptocurrency sector has experienced very uneven geographic development, and the lack of regulatory clarity is hampering the development of technology-related business and services in many emerging economies.

However, they highlighted the technology's promise to deliver banking services to those currently unable to do so, highlighting a plan to expand their Gemini exchange into emerging regions.

The brothers advocated that lawmakers use regulatory sandboxes to reduce the barriers faced by cryptocurrency startups, warning that stringent regulatory requirements could inhibit innovation.

Technical Market Outlook:

The BTC/USD pair has been rejected from the higher price levels and broke out from the triangle pattern. The breakout was made to the downside and the price has hit the level of $18,000, which is a technical support for the price. 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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