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Technical Analysis of BTC/USD for Apr 29, 2020
Crypto Industry News:
Speaking at Virtual Blockchain Week, the famous venture capital investor Tim Draper confirmed that he is sticking to his six-digit Bitcoin price forecast.
In 2018, Tim Draper publicly announced that the Bitcoin price will reach $ 250,000 by the end of 2022 or early 2023. He cites a few main reasons that can lead to this type of price action. Draper believes the US government’s massive stimulus package will lower the dollar and “send people to cryptography.” He also expects Bitcoin to be adopted around the world at this time.
Draper says that a company called OpenNode (in which he invested $ 1.25 million) can help achieve this goal. OpenNode is building a Bitcoin payment gateway in the Lightning Network, known for extremely fast BTC transaction settlements. He believes that over time such services will prove their competitive advantage over conventional players – credit cards – and steal market share from them in the same way that MasterCard and Visa took market share from the then dominant American Express.
Technical Market Outlook:
The BTC/USD pair has broken above the technical resistance located at the level of $7,706 and made a new local high at $7,817. The next target is seen at the level of $7,897, but there is a clear bearish divergence between the price and momentum oscillator at current levels. If bears will push the prices lower, they can hit the next technical support located at the level of $7,385 and below.
Weekly Pivot Points:
WR3 – $9,046
WR2 – $8,348
WR1 – $8,040
Weekly Pivot – $7,352
WS1 – $7,064
WS2 – $6,356
WS3 – $6,047
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
