Technical Analysis of BTC/USD for June 5, 2020

analytics5ed9e639b7794.jpg

Crypto Industry News:

The latest Bloomberg report reveals that the company expects Bitcoin to re-test its 2017 record results, and that it could even reach $ 28,000.

The report suggests that COVID-19 has accelerated Bitcoin’s maturation as an asset, showing its strength among declining stocks. In addition, it indicates the ever-growing appetite of institutional investors, in particular Grayscale or GBTC, which consumes about 25% of new supply. The constantly falling premium in GBTC despite strong influences indicates that supply is removed from the market and maturing. Based on an average 30-day premium of 20% on the holding fund relative to the underlying net asset value, it is comparable to a historical average of 39%.

The report says that “something must go really bad” so that Bitcoin does not grow. He then states that he will reach the highest level of $ 20,000 in 2017, and that he may even reach the new highest level of $ 28,000.

According to the report, another important reason is the rapid growth of Tether. In May, its market capitalization amounted to USD 4 billion. A year later it increased to 10 billion dollars. The increase in the circulation of stablecoins indicates a greater acceptance of cryptographic assets.

After halving and almost half of 2020, we should not wait long to see if the forecasts will come true.

Technical Market Outlook:

The BTC/USD pair has been consolidating the recent gains around the level of $9,700 after the bounce form the trend line dynamic support. The momentum is now neutral, so any clear violation of the level of $9,249 will accelerate the drop towards the next technical support located at the level of $8,565. The daily time frame trend remains up.

Weekly Pivot Points:

WR3 – $11,128

WR2 – $10,392

WR1 – $9,960

Weekly Pivot – $9,277

WS1 – $8,866

WS2 – $8,158

WS3 – $7,756

Trading Recommendations:

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 June 5, 2020:

Won't your trader friends like this?
InstaForex
About the Author
InstaForex brand was created in 2007 and at the moment it’s a top choice of more than 2,000,000 traders. More than 1,000 clients open accounts with InstaForex every day. All InstaForex clients get great opportunities for effective trading on the forex market, as well as on-time technical and customer support

Related Posts

Leave a Reply

*