BTCUSD Outlook & Technical Analysis for Bitcoin
A sharp increase in Bitcoin miner’s reward after the price plunge last month led to a rise in demand for the number one cryptocurrency towards the end of Q1 and into the start of Q2 on IQOption broker.
Traders and miner’s now had an incentive to hold on to their Bitcoin BTC holdings, but for how long?
Read on as we uncover significant technical support and resistance levels driving the trends of the BTCUSD.
BTCUSD Technical Analysis
Bullish and Bearish Scenario
So let’s start by considering the likely bullish scenario for the BTCUSD from a monthly chart perspective.
First of all, a long term view shows the chart in a corrective A-B-C wave of the Elliot wave structure after the 1-2-3-4-5 impulse waves.
The chart is currently in the corrective wave-C, which can go in two different formations. It can bounce off the MA-50 as one scenario and head back in a bullish direction, or it could break below the MA-50 and lower to the $3122.28 support where it may find support.
The second wave of regular bullish divergence is confirmed after last week’s close by a golden cross of the stochastic oscillator. The bullish divergence flagged, in combination with a bullish candlestick formation, emphasizes a strong come back of the bullish trend, not forgetting that the MA-50 is above the MA-200.
However, if a weekly candlestick closes below the $5856.00 support, we should look out for further slump in the Bitcoin BTC price.
he hidden bearish divergence formed across the top ten cryptocurrencies by market cap, including Bitcoin BTC, failed to set new lows as the bulls continue to reinforce their grip and setting higher troughs.
A breach of the MA-50 and MA-200 should confirm that the bulls have dominated the market, and we should expect to see the Bitcoin BTC serve as a hedge against the risk that accompanies the global outbreak of the COVID-19 (coronavirus).
Meanwhile, the bears may still be in the market as the price still trades below the MA-50 and MA-200 across Singapore broker sites.
Venture Capitalist Billionaire Hopeful on Bitcoin’s ‘Flight to Safety’
Billionaire CEO of venture capital firm Social Capital Chamath Palihapitiya has, in an interview with Anthony Pompliano, founder of Morgan Creek Digital, stated his belief that the time for Bitcoin (BTC) to shine could be now.
Speaking in the interview, Palihapitiya stated that with Bitcoin still somewhat unreliable, as it remains a speculative instrument, a moment like this was needed for it to be relevant.
The moment like this he referred to is the current global economic crises brought about by the Coronavirus pandemic. Palihapitiya also explained that Bitcoin remains too volatile to replace USD or other global currencies.
According to Palihapitiya, the currency markets remains the only market more important than the debt markets. According to him, the currency markets have a relatively low amount of volatility, moving in value over time as it enables more market shareholders to be active in that market so that they can utilize it as a critical support of how they run their business.
However, the capital firm boss also stated that with Bitcoin immensely volatile when compared to the currency markets, no one can effectively use it. According to him, Bitcoin pushes the currency market into the “ghetto” of day traders and speculators.
Bitcoin has found a way of keeping some of the long-term holdings, having lost the day traders and speculators.
According to Palihapitiya, in ten years, depending on the likelihood of debasement in an attempt to avoid traditional framework failure, BTC could eventually be seen as a flight to safety.
People in a few years will buy Bitcoin to protect themselves and to hedge themselves.
A monthly price close below the $6425.00 support would prove that the bears have resumed control of the exchange rates.
Conversely, a slowing of the stock market crash may raise a comeback in interest towards cryptocurrencies, and consequently leading to an increase in demand.
- USDSGDWeekly outlook for Singapore Dollar – May 26 2020 - May 26, 2020
- BTCUSD – Weekly outlook for Bitcoin Price – May 20 2020 - May 21, 2020
- USDSGDWeekly outlook for Singapore Dollar – May 15 2020 - May 15, 2020