Bitcoin analysis for 03/01/2019

With the spread of information about the deteriorating humanitarian crisis in the most oil-rich country of Latin America – Venezuela – there is a growing interest in Bitcoin. This country experienced the greatest demand last week at LocalBitcoins website.

This week saw a jump of 11% from 1743 BTC at 1974 BTC compared to the previous one, which is the highest ever recorded activity on the Venezuelan stock market.

Bitcoin is an unstable resource. Even the most possible deterrence of all investors did not affect the local community so much. If you look at drastic statistics, such as the fall in Bitcoin’s value by 80% of its value, it fades in comparison with a national coin that has lost 95% of its value overnight.

For Venezuela grappling with hyperinflation, Bitcoin remains a viable alternative. The economy of this country for the last 4 years has shrunk by about 50%.

Let’s now take a look at the Bitcoin technical picture at the H4 time frame. The marekt is tading below the local technical resistance at the level of $3,850 after a bounce from the 50% Fibo at $3,643. The momentum decreased on the way up, but the bulls are still fighting to remain in control of the market. The nearest technical support is seen at the level of $3,595 and any violation of this level would lead to the next Fibo retracement at $3,511. On the other hand, the next technical resistance is seen at the level of $3,994 and if this one is violated, then at $4,200. The outlook remains bullish as long as the level of $3,452 is not broken.

The material has been provided by InstaForex Company – www.instaforex.com

Source:: Bitcoin analysis for 03/01/2019