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Daily Bitcoin and Crypto Analysis

Daily BTC Analysis

November 19, 2020
Federal Reserve Chairman Jerome Powell has confirmed what we already know: “The economy will never be the same again.”

Federal Reserve Chairman Jerome Powell has confirmed what we already know: “The economy will never be the same again.”

Correct.

The millions of people worldwide who are losing jobs in the service industry will hardly find this of comfort. However, the good news is the Fed will do everything they can to help, and for us, that means: Print more money.

With Bitcoin trading at nearly $18,000, it will not be long before the question: “Do you own any Bitcoin?” is replaced with “Do you own any Satoshi’s?”

Yesterday saw record volumes trade across Bitcoin derivative products.

$57B of Bitcoin futures traded across the main venues. One thing to note: The open interest in Bitcoin futures fell while open interest in options increased, with put purchases the largest trades being executed. 

Ordinarily, a slight drop in open interest would pass without a mention, however, given traders were unable to move prices through the $18,265 level, and given the market has so far failed to attempt to revisit the price area, it becomes something that should be flagged. If prices remain under $18,265, our short-term outlook is for sideways trading at best, with a possibility of a retracement to lower levels. 

Technical Analysis

The $17,890 to $17,130 trading range is beginning to form. Failure to break up above $17,890 yesterday has opened the way for a period of consolidation. Given the rally we have seen over the last 2 weeks, a moment of pause is a healthy signal.

Traders will be wary of resistance at $18,265 and we expect any upwards momentum to slow into this level. A break up through this level would open up the possibility of $19,050 print.

On the downside, $17,130 is likely to be well supported, and while it’s possible we could see a further pull back to the $16,500 area, we note that Bitcoin is still very much a buyer’s market and have indications of resting buyer orders between $16,490 and $16,270. A continuation of this higher trading range is the most likely outcome today.

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