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Bitcoin Technical Analysis

By Konstantin KaiserCryptocurrencyDec 07, 2019 03:29
au.investing.com/analysis/bitcoin-technical-analysis-200431561
Bitcoin Technical Analysis
By Konstantin Kaiser   |  Dec 07, 2019 03:29
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The cryptocurrencies' next market cycle might be around the corner.

BTC/USD WEEKLY CHART

Bitcoin trended down for the past five months and recently bounced off heavily its major support zone at around $6.300. Neither the RSI nor the MACD show signs of a bullish reversal. At the current stage, it seems likely that Bitcoin will most likely continue its downtrend. Before that, however, it might reach up to the major resistance around $9.500, where both the Fibonacci extension and Fibonacci retracement 0.382 level act as resistance. Additionally, the high from April 2018 acts as additional resistance. Yet, Bitcoin still needs to break the 0.5 fib level at $8.500 before it might re-test the 0.382 fib levels.

Furthermore, it can be observed that the current bounce is the second attempt of the golden ratio to successfully hold as support. A bounce off this level is considered bullish. However, Bitcoin was recently rejected by the 0.382 fib level, which is bearish.

In summary, the upcoming weeks will act as a significant indicator. Either Bitcoin fails to break the resistance at the second attempt, then Bitcoin will most likely fail to hold the support at the third attempt. A break of the 0.382 fib level at around $9.500 would, however, initiate a trend switch and Bitcoin’s trend could be considered bullish again.

For now, the outlook is rather bearish. It seems likely that Bitcoin will be rejected by the 0.382 fib level. This, however, implies another uptrend potential of around 25 percent.

So far, the cryptocurrency has caused many mixed feelings. It can be argued that it lagged behind expectations, even though it had its strongest moments, as, for example, when Bitcoin reached a record high of $ 19,783.06 in 2017.

According to Statista, global spending on blockchain integration is expected to increase from $ 1.5 billion in 2018 to $ 15.9 billion in 2023. Companies in almost all industries are already trying to adopt their own private version of Blockchain and cryptocurrency to take advantage of various benefits. Although the financial sector accounts for more than 60% of the global market value of blockchain in 2018, the technology has rapidly spread to other sectors such as health and agriculture.

As a result of these developments, the crypto stock exchanges increased significantly in 2019 compared to previous years as new trading platforms were constantly being implemented to meet the ever-increasing demand.

Some crypto exchange platforms expected to be seen in 2020

Burency: We had the opportunity to speak with Quentin Herbrecht, marketing coordinator at Burency and founder of Markchain. He tells us that "Burency uses the Nebbex protocol provided by Lloyd's Bank of London, which is the first institutional standard for the preservation of digital assets, both secure and liquid."

Kraken: Kraken is the first exchange to display its market data at the Bloomberg terminal and successfully pass a verifiable cryptographic proof of reserve testing.

Binance and Huobi are one of the first exchanges to offer trading in leverages.

Binance is expected to launch a new regulated trading platform for US traders next year.

Finally, we can also note Nexinter as an innovative trading exchange. It is one of the first trading platforms that has a redistribution policy with its users.

Bitcoin Technical Analysis
 

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Bitcoin Technical Analysis

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