Technical Analysis of BTC/USD for July 28, 2020
Crypto Industry News:
US residents who invested their first stimulus checks in Bitcoin, which they received from US authorities as compensation for the coronavirus situation, saw a profit of 45.5%, from $ 1,200 in April to around $ 1,746 at the time of writing, when the cryptocurrency surpassed worth $ 10,200.
In a July 26 interview Larry Kudlow, a White House economic advisor, confirmed that Americans will receive another check for $ 1,200 as part of a stimulus package worth about $ 1 trillion, first announced on July 23.
However, according to the media, many Americans report that they have not received the first checks that the US Treasury Department began issuing in late March. The second payments will be made in August, according to Treasury Secretary Steven Mnuchin, but this could potentially mean for some that they will not receive government aid until November if the process is the same.
Checks are designed to ease the economic hardship faced by many US residents who have lost their jobs or experience significantly lower incomes as a result of the coronavirus pandemic. Many Americans may have chosen to invest their first payment not in, for example, delaying eviction or replenishing their income – if needed – but in cryptocurrency. Coinbase’s Brian Armstrong found that $ 1,200 in deposits and purchases on the stock exchange has quadrupled this month.
Based on online responses to the news that another check is imminent, coupled with Bitcoin’s recent rise in value to over $ 11,200, some cryptocurrency traders may think that another $ 1,200 investment is not a bad idea. When US officials first announced a $ 1 trillion stimulus package on July 23, the price of BTC surpassed $ 9,500, breaking an extremely long stretch of low volatility between $ 9,000 and $ 9,500.
Technical Market Outlook:
The BTC/USD pair has broken above the $11,000 level and made a new local high at the level of $11,318. The bulls do not seem to stop just yet as the momentum is still strong and positive despite the overbought market conditions. The next target is seen at the level of $11,855 and $11,500. The nearest technical support is located at the level of $10,855 and $10,430. There is only 3 days until the month’s end and the current monthly candle looks bullish.
Weekly Pivot Points:
WR3 – $11,362
WR2 – $10,720
WR1 – $10,360
Weekly Pivot – $9,731
WS1 – $9,314
WS2 – $8,690
WS3 – $8,269
The volatility on Bitcoin has significantly increased, but still 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 long-term technical support is located at the level of $7,897.
The material has been provided by InstaForex Company – www.instaforex.com