BTCUSD Outlook & Technical Analysis for Bitcoin
With an increase in miners’ reward, comes an increase in institutional money into the crypto space.
The recent virus (Coronavirus) outbreak in Asia China in the past weeks has forced investors to seek refuge in the crypto market.
Read on as we analyze basic chart patterns, and exciting news events driving the BTCUSD in a bullish trend on IQ Option broker and exchange terminals.
Miners’ Revenue vs. BTCUSD
BTCUSD Technical Analysis
Bitcoin BTC, the world’s number one crypto asset and other top cryptocurrencies, saw a massive surge in price over the weekend, following a plunge in the price of the Chinese Yuan.
The increase in the death count of victims of the Coronavirus in China makes most global investors in China-based asset classes seek a haven in crypto assets where Bitcoin leads.
The BTCUSD hits the $10,000.00 round-number resistance for the first time since 2019, a significant milestone in the growth of the asset class after an overextended bearish correction phase.
At the closing price of the January ’20 candlestick, the Bitcoin to dollar exchange rate closed above the $7772.71 bearish resistance signaling an end to the prolonged six months price correction of USD based stable coins.
The new monthly chart setup is similar to the break of the December ’18 bearish resistance, as illustrated above.
Asian and Singapore broker platforms record an increase in demand for Bitcoin BTC as traders run to the cryptocurrency as a hedge against uncertainties that comes with the virus breakout in the region.
The combination of regular bullish divergence and price close above significant resistance of Dec 30 ’19 makes a perfect confluence of event that has brought the bulls an increase of about 78.53% from the Dec 16 ’19 low.
After a bullish price thrust above the bearish closing inside-bar resistance, the BTCUSD continued the bullish price rally and so far increased by about 5.6% from last week’s closing price.
The above weekly chart illustration highlights the established past resistance levels as price objectives for profit taking (Oct 21 ’19, Aug 05 ’19, Jun 24 ’19).
The bulls got confirmation to add to their existing long position after a price close above the 200-day MA, switching an old resistance into support going forward.
After closing bullish above an accumulation of bullish resistance ($9878.00) on Feb 09 ’20, the bears tried to shake off the bulls with a bearish close on Feb 10 ’20 and failed to an increase in demand for BTC on Feb 11 ’20.
40 German Banks Seek Regulator’s Approval to Offer Bitcoin Custody
Following the German government’s new Anti-Money Laundering law, a flurry of German banks is seeking approval from regulators to offer digital assets services, report claims.
According to a February 7 report by local newspaper Handelsblatt, the German Federal Financial Supervisory Authority (BaFin) is presently dealing with a cascade of applications from 40 banks seeking to become regulated cryptocurrency custodians.
Early this year, new legislation that permits banks to spread their offerings beyond established securities such as stocks and bonds to include cryptocurrencies, like Bitcoin (BTC), Ripple (XRP), and Ether (ETH) was signed into law. The legislation, however, required that all market participants register their interest with the regulator on or before the end of March.
As a result, the regulation agency has reportedly received a high number of applications that far outstripped expectations. Berlin Solaris Bank is reportedly among the earliest companies to apply with BaFin. The bank already has an established crypto-focused business.
Conclusion and Projection
A general resurgence of institutional players in the cryptocurrency market with Bitcoin BTC being a favorite brings confidence into the market, alongside an increase in miners incentive to hold on to their Bitcoins.
The bullish trend should last all through the first quarter of ’20 with the higher time frames being the major trend drivers.
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