Technical analysis of BTC/USD for Jan 13, 2020


Crypto Industry News:

The offer of Bitcoin options from the CME exchange will certainly enrich the giant’s product menu. In September 2019, CME filed an application to double the monthly limit on open positions of Bitcoin futures contracts to 10,000 BTC, due to the increasing demand for futures contracts.

The options will enable traders to use alternative trading strategies and to save on margins using margin compensation. The CME options on bitcoin will have a minimum tick size (tick size) set at 5 USD per BTC. In this case, for contracts worth 5 BTC, the value will increase by 25 USD.

It seems that the evolution of Bitcoin towards the traditional investment scene with trading in derivatives has been announced as a sign of maturity. It is a gateway for traditional investors to get acquainted with the often volatile but exciting market. It can also lead to a further increase in the interest and adoption of digital assets.

Technical Market Overview:

During the weekend, the BTC/USD pair has been trading inside a narrow range located between the levels of $7,934 – $8,226. The pair har tested the technical support located at the level of $7,601 – $7,581 and bounced higher, which means, the support had been recognized by the market participants as valid and they want to resume the recent uptrend. Moreover, there is no possibility to move lower at the price of Bitcoin unless the support is clearly violated. The bulls have temporary control over the market and the odds for another spike up are high.

Weekly Pivot Points:

WR3 – $9,744

WR2 – $9,058

WR1 – $8,561

Weekly Pivot – $7,905

WS1 – $7,428

WS2 – $6,754

WS3 – $6,270

Trading Recommendations:

The best strategy in the current market conditions is to trade with the larger timeframe trend, which is still down. All the shorter timeframe moves are still being treated as a counter-trend correction inside of the uptrend. There is a possibility that the wave 2 corrective cycles are completed, so the market might be ready for another impulsive wave up of a higher degree and uptrend continuation.

The material has been provided by InstaForex Company –

Source:: Technical analysis of BTC/USD for 13/01/2020:

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