Technical Analysis of BTC/USD for July 21, 2020

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Crypto Industry News:

The underground of the Internet, or darknet, is that part of the web that is beyond the reach of traditional browsers and search engines. There are tons of digital markets in this network where all kinds of illegal goods are traded and paid for with cryptocurrencies.

In a State of Crypto Crimes report released earlier this year, blockchain analyst Chainalysis investigated crimes committed using cryptography, among them darknet transactions, which were the most consistent. In 2019, revenues from online underground markets hit a new record of $ 790 million.

While indicators on all financial fronts for these markets are rising, one aspect that remains much more consistent is the choice of cryptocurrency.

“The most popular cryptocurrency used by the darknet is Bitcoin,” said Kim Grauer, head of research, and Carles Lopez-Penalver, senior cybercrime analyst at Chainlysis.

Among the altcoins used are Litecoin, Bitcoin Cash, and Monero. Even though only one of the three cryptos listed above has privacy features, the popular altcoins are widely used. However, some markets have seen exclusive use of Monero because of its encrypted web features, Chainalysis management said.

Altcoins are even more distant as operations grow in size and scale. According to Bitfury’s Crystal Blockchain report, in the first quarter of 2020, darknet entities received more than $ 384 million in Bitcoin and more than $ 411 million was sent, where the recipients of these transactions are exchanges divided between those that have verification requirements and those that do not.

Unlike high-value Bitcoin transactions, Grauer and Lopez-Penalver added that altcoins are only used for smaller darknet transactions.

Technical Market Outlook:

The BTC/USD pair has been trading around the 38% Fibonacci retracement of the last wave down that is located at the level of $9,157. The bears had pushed the price down from the local high made at the level of $9,201, but the price did not come back under the short-term trend line. The momentum remains neutral which indicates another sideways day. The next targets for bulls are seen at the levels of $9,209 and $9,261. The nearest technical support is located at $9,095.

Weekly Pivot Points:

WR3 – $9,569

WR2 – $9,411

WR1 – $9,271

Weekly Pivot – $9,117

WS1 – $8,968

WS2 – $8,812

WS3 – $8,862

Trading Recommendations:

The volatility on Bitcoin has been subdued for more than two months now, so 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

Source:: Technical Analysis of BTC/USD for July 21, 2020:

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