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Technical analysis of BTC/USD for 12/08/2019
Crypto Industry News:
Some analysts believe that the upcoming no-deal Brexit will drive Bitcoin’s price to an unprecedented breakthrough and record highs in 2019. Some even predict that this can fundamentally change Bitcoin’s place in the global economy.
Brexit is already causing market turmoil. The prospect of Brexit without an agreement has already resulted in a loss of pound sterling relative to other leading currencies. This tendency has been growing since the appointment of the hardened Brexiteer, Boris Johnson, as Prime Minister of Great Britain. Johnson promised that Britain would leave the European Union on October 31, 2019.
Leaving the EU without agreement will cause confusion and volatility in the two main fiat currencies, and will also cause an identity crisis in the global system, as unforeseen situations and vulnerabilities of the main global fiat currencies have been highlighted. Some say this will prevent capital from escaping to Bitcoin as a safe haven, causing prices to soar.
The concerns of the Confederation of British Industry that Brexit would be a trap of economic chaos without agreement mean that Bitcoin’s position in the global economy can change fundamentally. In 2020, we expect an increasingly populist and politically unstable world to consolidate the status of a safe haven for Bitcoin and other cryptocurrencies more generally. And if central banks start increasing money printing again, arguments about cryptocurrencies such as Bitcoin, whose supply is limited, will be further strengthened.
Technical Market Overview:
The BTC/USD pair has been trading inside of the narrow range for some time now, consolidating the recent gains after the bounce from the level of $9,049. The local technical support located at the level of $11,027 has been tested during the consolidation cycle and the low of this test has been labeled as the low of the wave 2. It means the market is ready to continue the uptrend towards the new highs, but first, it will have to break out above the levels of $11,855, $12,008 and $12,269.
Weekly Pivot Points:
WR3 – $13,583
WR2 – $12,879
WR1 – $12,118
Weekly Pivot – $11,389
WS1 – $10,550
WS2 – $9,816
WS3 – $9,007
Trading Recommendations:
The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still up. All the shorter timeframe moves are being treated as a correction inside of the uptrend. The larger degree WXY correction might have been completed and the market might be ready for another impulsive wave up of a higher degree.
The material has been provided by InstaForex Company – www.instaforex.com
