Technical Analysis of BTC/USD for January 5, 2021

Crypto Industry News:

Bitcoin dropped to $ 27,700 and rebounded seconds later, which was a shock for some and a financial ruin for others. Long-term futures traders lost a total of $ 190 million on Binance alone in one hour, according to Chainnode, the most ever.

The numbers highlight the current face of Bitcoin, which revolves around new all-time records and becomes the hottest asset of 2021 with Ethereum.

Despite warnings from various analysts that the bull market cannot continue indefinitely, many traders have taken considerable risks by betting on the bull market to continue. In this case, $ 34,800 was the final high, and BTC / USD then lost $ 7,000 in 24 hours, including $ 4,000 in less than 60 minutes.

The result for those who had excess leverage was visible: "$ 190 million (long) was liquidated on Binance in 10 minutes. The greatest value so far," commented Glassnode.

Technical Market Outlook:

The BTC/USD pair has made new all time high at the level of $34,777, but since then 19.42% violate and dynamic pull-back occurred and the price had hit the level of $28,480. Nevertheless, the up trend is being continued and there is no strong 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