Technical Analysis of BTC/USD for January 4, 2021

Crypto Industry News:

Bitcoin futures contracts currently open are at $ 10 billion, an all-time high, according to Skew Analytics. This means there is over $ 10 billion in "betting" on the future BTC price. This coincides with a record weekend for a cryptocurrency price that has surpassed $ 34,000.

Futures contracts are a type of bitcoin investment derivative where traders agree to buy bitcoin in the future at a pre-agreed price. Volumes on futures market picked up again on January 2, likely for two reasons. First, futures investors whose contracts have just expired have noticed a sharp rise in bitcoin's price and have made the decision to reinvest. Second, a whole host of new traders have witnessed Bitcoin's price dropping to below $ 30,000 recently. It is possible that they also wanted to join an uptrend at better market prices during a short pullback.

Technical Market Outlook:

The BTC/USD pair has made new all time high at the level of $34,777 during the weekend. The up trend is being continued and there is no sign of trend reversal. Moreover, the up trend is now going parabolic, almost vertical. The next mid-term target for bulls is seen at the level of $50,000. The nearest technical support is seen at the level of $32,000 and $30,000. Please notice, the level of $34,777 is very close to the 161% Fibonacci extension level of the main wave 1, located at $35,051.

Weekly Pivot Points:

WR3 - $46,938

WR2 - $40,854

WR1 - $37,989

Weekly Pivot - $31,477

WS1 - $28,840

WS2 - $22,622

WS3 - $19,555

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 $35,051, 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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The material has been provided by InstaForex Company - www.instaforex.com