BTCUSD Outlook & Technical Analysis for Bitcoin
Contents
Introduction
A slowing in miners’ reward for the past two weeks across OlympTrade broker leads to a slump in Bitcoin BTC price. The slump in miners’ incentives sends a domino effect across the entire crypto industry as the top altcoins also suffer a similar fate as the number one cryptocurrency.
Read on as we take a look at the significant price levels, patterns and exciting news events that drive the BTCUSD.
Miners’ Revenue vs. BTCUSD
BTCUSD Technical Analysis
Monthly Chart
The early break above Dec 01 ’19 resistance that confirmed the bottoming of the 2019 BTC price correction on major crypto brokers, including the Singapore broker terminals, is being questioned by short term traders, as the second half of Q1 appears to close bearish.
Perhaps the Novel coronavirus breakout in China is taking a toll on the Bitcoin BTC price considering that China hosts a large number of mining rigs, and an increase in death toll may have an impact on the workforce.
A price close below the significant $10K mark sent a negative sentiment across the crypto market.
Weekly Chart
The $10.35K resistance level from Oct 21 ’19 has proved to prevent a further rise in the Bitcoin price for the time being.
However, we may see a continuation of the bullish trend in the last half of Q1, considering that the $6425.00 support is still intact.
A price close above the $10,350.00 resistance would signal a comeback of bullish momentum and better opportunity to scale into our open positions.
Daily Chart
The hidden bullish divergence setups on the daily time frame triggered on Jan 24 ‘20 and Feb 19 ’20 later failed to an increase in selling pressure bringing the BTC price below the $9K region.
Although the bears appear to be in control of the market in the mid-term, an exit of the oversold region, in combination with a chart pattern, may redeem the bull back into their initial upward campaign.
Finnish Customs Not Sure on what to do with Seized 15M Dollar worth Bitcoin
Finland’s government is still undecided on what to do with Bitcoin seized from criminal years ago. While other governments are selling confiscated bitcoins (BTC), Finland still stands on the fence of decision.
Years ago, Finnish Customs confiscated 1,666 bitcoins from drug criminals. However, the government agency operating under the Ministry of Finance is reportedly deliberating on what to do with seized coins.
As per the report by the country’s national public broadcasting firm on February 25, Finland’s Customs service doesn’t want to sell the confiscated Bitcoin for fear the coins could go back to the hands of criminals.
The report also reveals that the Bitcoin was worth roughly $760,000 at the time of the seizing. However, at today’s value, the said 1,666 BTC is worth more than $15.5 million.
The agency was reportedly planning to sell-off the funds back in 2018 but eventually decided on keeping the crypto asset due to Anti-Money Laundering (AML) concerns.
According to Finland’s head of finance at the Finnish Customs service, Pekka Pylkkänen, cryptocurrencies like Bitcoin are primarily used for illicit practices. According to Pylkkänen, the agency views the problem of Bitcoin to be specifically related to the risk of money laundering. The buyers of cyber currency seldom use them for reasonable endeavors.
Conclusion and Projection
With the higher monthly and weekly time frames still showing a strong bullish trend, we believe HODLers should lookout for a resurgence of the bullish trend in the last month of Q1.
I've been a professional trader for over 5 years.
Currently I work as forex analyst for different investment companies.
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