BTCUSD – Weekly outlook for Bitcoin Price – 19th November 2020

BTCUSD Forecast for BTC

Introduction

The US election also contributed to the rise of bitcoin recently has OlympTrade online broker were not sure of the new policy the new administrator might be bringing in terms of trade deals.

Could the whales be looking at a significant drop of bitcoin in the market in some days to come at the market approaches a sensitive area?

BTCUSD Technical Analysis

Monthly Chart

Monthly Chart of BTCUSD (Tradingview) - 16th October 2020

Monthly Resistance: 19999.00, 12068.59

Monthly Support:   4112.12, 3126.88, 12068.59, 7820.75

The BTC/USD value has increased as the price finally soars above the previous resistance zone of 12068.59 to create a newer high for 2020 as the price approaches the all-time high of 2017 (19999.00).  

The bullish surge of the BTCUSD has attracted more online brokers as more prominent institutions are looking for ways to diversify their investments for safety.

A break above the 19999.00 resistance level will create a new high for the BTCUSD after the 2017 history.

However, the resistance zone is another level that the traders, Institutions, online brokers, and other investors will be watching with care because the level did reject bitcoin’s price before. The zone can react again as it did before. 

The bears may react from the resistance zones by pushing back the price of bitcoin, and if the chart should have a double top pattern, we may see the price dropping down to the support levels of 7820.75.

Weekly Chart

Weekly Chart of BTCUSD (Tradingview) - 16th October 2020

Weekly Resistance: 17000

Weekly Support: 10957.15, 9298.00, 3901.25

The weekly time frame shows that the BTCUSD has been in an uptrend since the bitcoin could find support at 3901.25 during the global crisis as bitcoin was one of the easier means for the financial transaction the lockdown.

The BTC/USD has entered into the stochastic indicator’s overbought zone, and some school of thoughts believes that the buying position should continue to hold. At the same time, another theory says traders or online brokers should be planning to close their open positions.

If the first theory is established, we may see the trend continues higher while a reversal pattern will mean that the uptrend has finished, and we should be looking for a short position trade. If the direction of BTC/USD should reverse, it will push back to the support level of 10957.15.

Daily Chart

Daily Chart of BTCUSD (Tradingview) - 16th October 2020

Daily Resistances: 16495.00

Daily Supports: 16170.18, 13357.71

The moving averages of 10 and 20  from the Daily time horizon crossed each other at the support level of 10665.06 to indicate an uptrend if we consider the moving average cross over strategy. 

Therefore, the trend is still bullish, and the recent surge happened during the US election as investors seek a safe-haven.

However, if we see that the price can’t close above the 16495.00 resistance and we see the moving average ten crosses below the 20 MA, we are going to see the price drops towards the support level of 13357.71.

H4 Chart

H4 Chart of BTCUSD (Tradingview) - 16th October 2020

H4 Resistance levels: 16495.00

H4 Support levels: 16170.18, 14818.00

The price of BTCUSD had an earlier rejection at the resistance level of 16495.00 that push it down to the 16170.18 support of 14th November 2020; a close below that level will mean that the price may drop down to the 14818.00 level.

If bitcoin’s price should rise above the resistance of 16495.00, we shall continue the uptrend heading towards the all-time high of 2017.

Bullish Scenario:

A general bullish scenario has been trending from the weekly and daily time frames. Bitcoin’s value has risen to a new high for the year 2020; a close above 20000 levels will mean a new high.

Bearish Scenario:

The resistance zone at (16495.00) could not hold at press time, and as a result, traders should look to take profit from their long position around the 20K round-number resistance. Before then, traders also eye the 19K resistance level.

Bitcoin BTC News Events 

A Bitcoin whale short $100 million 

Are big holders expecting a more massive drop?

A short position with about $100 million (BTC) was placed by larger Institutions around the resistance level of 164950; these are whale-driven sell-off as the price is within a psychological zone that is attracting traders, other investors. 

The BTCUSD has been trending bullish, and its momentum is still strong; some investors are of the options of long positions, but some are looking out for a bearish move.

There are hints that the big whales might be taking profits, and some have opened short position for a drop in bitcoin price. It was noticed that the $100 million short was on By bit, other positions are opened worth about $3.5 million on average consecutively over some hours.

 According to CL, these scenarios may result from sellers being engulfed, which caused a squeeze causing the price to increase.

According to a researcher known as Blackbeard, he said it is time to be cautious after considering the large deposit of bitcoin worth about $142 million into Gemini from the data gotten from CryptoQuant. 

The giant whales usually utilize exchangers with strict and firm regulatory measures like Gemini and Coinbase.

Conclusion and Projection

It is evident that the resistance levels of $16,000 and $17,000 are a psychological zone for the buyers and sellers trading bitcoin; we can see that there is higher buyer demand from the stablecoin inflow data as the level has high liquidity.

The US election contributed to the bullish surge from the 10957.15 level to the 16495.00 levels, and the stochastic indicator shows an overbought signal in the zone for a possible reversal.

I'm based in London ( England, UK )
I've been a professional trader for over 5 years.
Currently I work as forex analyst for different investment companies.

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