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Bitcoin Price: buyers are preparing to break through all-time highs

Bitcoin Price: buyers are preparing to break through all-time highs

This analysis brought to you by RoboForex

The BTC quotations are again developing descending dynamics. Currently, buyers are lacking the strength to break through an important resistance level. The next critical support level is 16,200 USD, a breakaway of which will provoke the emergence of a Double Top pattern and further falling of the asset.

However, apart from the decrease, there are bright perspectives for the BTC. First of all, the US government might adopt a new package of stimulation measures sized 916 billion USD. This step might add more load on the falling dollar and push market players to invest more in safe-haven assets (such as Bitcoin and gold). Experts note that currently, the BTC is not an instrument of daily payments, rather, it is a means of storing your savings.

One of the private German banks, Hauck & Aufhäuser, announced that in January 2021, it will launch a crypto investment fund. This will give institutional investors access to digital assets, including Bitcoin, Ethereum, and Stellar. Such a step again confirms that cryptocurrencies enjoy high demand from institutional investors worldwide.

On the other hand, the director-general of PayPal is sure that a high-quality development of the crypto industry is impossible without a close partnership with regulators. The company, in its turn, spent a substantial sum on complying with all normative requirements. Also, note that PayPal became the first company to get a conditional license from the regulator of New York.

On D1, the Bitcoin is testing the fast Moving Average again. The previous test ended in a renewal of the all-time high, hence the current movement can be interpreted as a bearish correction before a new attempt of growth. The key support levels are 16,500 and 16,200 USD. Another signal supporting the growth will be a bounce off the ascending support line on the RSI. A negative signal for the bulls might become a breakaway of the lower border of the ascending channel.

On H4, a Triangle pattern might form. Buyers need to break through 20,000 USD very soon. Note also the RSI: earlier it fell below 30, indicating the end of the descending correction and further development of the bullish impulse. Securing the RSI values above the descending trendline will be a strong signal supporting the breakaway of the all-time high.

By Dmitriy Gurkovskiy, Chief Analyst at RoboForex

 

Disclaimer

Any predictions contained herein are based on the author's particular opinion. This analysis shall not be treated as trading advice. RoboForex shall not be held liable for the results of the trades arising from relying upon trading recommendations and reviews contained herein.

 

© 2020 CryptoDaily All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.

 

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