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Technical Analysis of BTC/USD for Apr 6, 2020
Crypto Industry News:
According to the Adoption of Digital Asset Trading report, about 100 cryptocurrency trading systems have been launched for institutional clients. Senior executives believe that large companies would be interested in taking advantage of the recent cryptographic crisis, in particular Bitcoin
The electronic currency trading companies that took part in the study are aware of the growing interest in Bitcoin derivatives. About 57% of traditional trading companies traded Bitcoin and 29% traded another cryptocurrency, Ethereum.
Based on the survey, it was determined that XRP, despite being the eighth most popular digital asset, was XRP / USD ranked 5th in the ranking of institutional companies.
According to the respondents, the biggest problems are security gaps in exchanges and fear of burglary. Another negative issue is fear of losing reputation, which is why many commercial institutions do not want to offer digital assets.
Despite these concerns, 97% of traditional trading companies are considering trading in digital assets over the next two years, according to a survey.
Technical Market Outlook:
During the weekend the BTC/USD pair has been trading inside of a local consolidation zone located between the levels of $6,568 – $6,989. On early Monday morning the bulls are in control of the price and are trying to test the level of $6,989 and might even push the prices higher. Nevertheless, the last rally has failed to continue and market has made a red Pin Bar candlestick pattern after the breakout. The rally was short-lived and currently the Bitcoin price has returned to the main channel area and is again trading below the red zone. If the bearish pressure will intensify again, then the price might move even lower towards the technical support located at $6,568 or even towards the level of $6,271.
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
