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Technical Analysis of BTC/USD for Apr 10, 2020
Crypto Industry News:
US public debt has reached a record level of $ 24 trillion, which gives us an average of almost $ 73,000 for every US citizen. This is a big surprise after the Federal Reserve began an unprecedented printing of $ 6 trillion. This was the Feds response to the financial consequences of the coronavirus pandemic, which also predicts a 13% increase in US unemployment.
The deteriorating financial situation in the US did not affect Bitcoin. Not only that, he survived without any government support, and at present BTC / USD trade has increased by 2.1% compared to the beginning of this year.
Meanwhile, economic commentator Peter Schiff noticed that US President Donald Trump is indebted to the country at a dangerous pace. “If he is re-elected, he will do more debt in 8 years than Bush and Obama in 16. Instead of draining the swamp, he drains the nation,” he wrote on Twitter.
Technical Market Outlook:
The BTC/USD pair has broken down from the possible Pennant formation and moved lower towards the nearest technical support located at the level of $6,908. Any violation of this level will likely lead to sell-off acceleration towards the level of $6,795 as the momentum is clearly diminishing. It is worth to notice, that Bitcoin has broken out from the ascending channel as well, which increases the odds of another wave down.
Weekly Pivot Points:
WR3 – $8,726
WR2 – $7,938
WR1 – $7,363
Weekly Pivot – $6,545
WS1 – $5,997
WS2 – $5,159
WS3 – $4,567
Trading Recommendations:
The fear of the coronavirus consequences is very strong among the global investors and it rules on the financial markets. So far the global investors are not so keen to invest in Bitcoin and treat BTC as a digital gold. The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred.
The material has been provided by InstaForex Company – www.instaforex.com
