Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of BTC/USD for 16 December 2020

Crypto Industry News:
According to strategists from a large investment bank JPMorgan, MassMutual's purchase of Bitcoins for $ 100 million shows that the demand for the cryptocurrency will continue to grow.

In a December 11 investor note, JPMorgan strategists, including Nikolaos Panigirtzoglou, reportedly suggested that Bitcoin adoption is spreading from family offices and wealthy investors to larger investors such as insurance companies and pension funds. As reported by financial media, experts said insurance companies and pension funds are unlikely to invest large amounts in Bitcoin, but even a small shift towards cryptocurrencies can be significant.

Strategists have calculated that if retirement funds and insurance companies in the United States, the Eurozone, the United Kingdom, and Japan allocate 1% of their assets to Bitcoin, demand will increase by an additional $ 600 billion. That's almost double the market capitalization of Bitcoin.

JPMorgan's strategists wrote: "The purchase of MassMutual's Bitcoins is another milestone in the adoption of Bitcoin by institutional investors. [...] There is a potential demand that may arise in the coming years as other insurance companies and pension funds follow MassMutual's example. "

Massachusetts-based insurance company MassMutual announced on December 11 that it had purchased $ 100 million in Bitcoin into its general investment account. MassMutual said the investment is part of a broad strategy designed to achieve "measurable but meaningful exposure to the growing economic aspect of our increasingly digital world."


Technical Market Outlook:
The BTC/USD pair has made the local high at the level of $19,517 where was capped after the Bearish Engulfing candlestick pattern occurred. The market is now consolidating the recent gains in a narrow zone located between the levels of $19,000 - $19,625. The nearest technical support is seen at the level of $19,000 and the next technical resistance is located at $19,625. The momentum is strong and positive, so the higher time frame trend remains up, but breakout below the level of $19,000 will open the road towards the next technical support seen at $18,571.

Weekly Pivot Points:
WR3 - $21,188
WR2 - $20,624
WR1 - $20.024

Weekly Pivot - $18,707
WS1 - $18,177
WS2 - $16,940
WS3 - $16,341


Trading Recommendations:
Bitcoin made a new ATH 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.






Performed by Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2020