Technical Analysis of BTC/USD for January 7, 2021

Crypto Industry News:

The total market capitalization of cryptocurrencies - the main driver for the overall health of the digital asset sector has exceeded - $ 1 trillion.

The cryptocurrency market, measured by market capitalization, has practically doubled over the past month. This event was based on new price records broken by bitcoin and the situation on ETH, which for the first time in three years exceeded the USD 1,200 level. Together, both assets account for around two-thirds of the total market.

Capitalization of over $ 1 trillion was hit just days after the market broke the 2017-18 highs. According to CoinMarketCap, during the last peak of the cycle in early 2018, total market capitalization reached around $ 830 billion.

During this time, altcoins peaked close to $ 547 billion after Bitcoin retreated from its December 2017 high. The altcoin market is currently worth less than half of that, underlining Bitcoin's dominance to date in the current cycle.

Technical Market Outlook:

The BTC/USD pair has made another all time high when the price hit the level of $37,777. Moreover, the up trend is now going parabolic, almost vertical. The next mid-term target for bulls is seen at the level of $40,000 and $50,000. The nearest technical support is seen at the level of $36,000 and $34,000. The momentum remains strong and positive, despite the extremely overbought market conditions on all mains time frames.

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