Technical Analysis of BTC/USD for November 23, 2020
Crypto Industry Outlook:
According to Pantera Capital, the supply of BTC is in a state of crisis, which may have a significant impact on the price. The real thing to face is PayPal.
In a recently published report, analysts of the cryptocurrency investment fund Pantera Capital stated that the issue of the shortage of BTC lies at the root of the current BTC price rally. The starting point for such a conclusion is to be the thesis that most of the newly created BTC should be seized by PayPal.
PayPal’s new cryptocurrency offering “is already having a huge impact on the market,” says Pantera. The report adds that the payment operator takes over about 70% of all new BTC in circulation.
Citing Bit data, Pantera announces that since PayPal was launched, the volume has started to explode, and itBit’s volume surge states that within four weeks of launch, PayPal is already buying almost 70% of the new bitcoin supply.
Bitcoin’s broadcasting policy was, as we know, programmed to deflation over time. When used widely, this leads to more purchasing power and a scarcity of supply. Panther claims that it is this latter factor that contributes to the parabolic rise of BTC.
Technical Market Outlook:
The BTC/USD pair has been seen trading inside of the ascending channel. The yearly high has been made at the level of $18,895 (at the time of writing the article), so the target for bulls is seen at the level of $19,000 first, and then $20,000. The nearest technical support is seen at the level of $18,000 and $17,644. Please notice, the momentum is strong and positive as the market approaching the all time high.
Weekly Pivot Points:
WR3 – $23,175
WR2 – $21,060
WR1 – $20,074
Weekly Pivot – $17,904
WS1 – $16,917
WS2 – $14,683
WS3 – $13,761
Bitcoin is trading close to the yearly highs and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $20,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $15,000 is broken.
The material has been provided by InstaForex Company – www.instaforex.com