Technical Analysis of BTC/USD for July 13, 2020
Crypto Industry News:
Japan Virtual and Crypto Asset Exchange Association (JVCEA) – a self-regulatory organization for the cryptographic industry in Japan – recently published a March report on Japanese main cryptocurrency resources.
169.376 BTC is listed on the Japanese stock exchanges, over 11% more than in the previous month. XRP increased by 6.4% to XRP 3.2 billion. Ether increased by more than 5.7% to 1.14 million ETH.
In addition, the number of Bitcoins Cash, Monacoins, Litecoins and NEM also increased slightly in March. Bitcoin spot trading volume amounted to 617.3 billion yen (about 5.8 billion dollars), 11 times more than the trading volume of XRP, the second-largest cryptocurrency in the same month.
In March, Bitcoin fell by over 25%. He started the month with around $ 8,600, but on March 12, known as “Black Thursday,” briefly fell below $ 5,000. Bitcoin ended the month close to $ 6,400.
The reason why Japanese investors have increased their cryptographic resources is not obvious.
It can be said that Japanese Bitcoin supporters did not hesitate to buy it again after the cryptocurrency market collapsed. There is also the possibility that Japanese investors were sending more cryptocurrencies to the stock exchanges for sale, as opposed to the recent withdrawal of Bitcoin from Coinbase.
Yuya Hasegawa, a market analyst at the FSA-licensed Bitbank cryptographic exchange, explained that usually price movement and cryptocurrency holding are “inversely correlated.”
“At a time of price decline, we can say that users send crypto to the stock exchanges to profit or reduce losses. Another reason may be the Japanese premium on the BTC market compared to the market based on US dollars after March 12,” he says.
Investors around the world have accumulated cryptocurrencies during a coronavirus pandemic. According to the British application for trading cryptocurrencies “Mode”, investors from the Baby Boomers generation (born 1946-1964) and Generation-X (born 1965-1980) have increased their monthly investment in Bitcoins since the beginning of the pandemic.
Technical Market Outlook:
The BTC/USD pair has bounced from 61% Fibonacci retracement seen at the level of $9,082, but the bounce has been capped at the level of $9,290, which is the key short-term technical resistance. Since then the market has been trading in a narrow zone and no new high or low was made during the weekend. The momentum is still positive, so odds for another move upwards are high as long as the level of $9,082 is not clearly violated. The larger time frame trend is still up.
Weekly Pivot Points:
WR3 – $10,016
WR2 – $9,728
WR1 – $9,448
Weekly Pivot – $9,161
WS1 – $8,884
WS2 – $8,576
WS3 – $8,302
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 until the level of $10,791 is clearly violated. The key mid-term technical support is located at the level of $7,897.
The material has been provided by InstaForex Company – www.instaforex.com