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BTCUSD Weekly Outlook and Bitcoin Fundamentals , June 18 2020

BTCUSD Forecast and Technical Analysis & Fundamentals for Bitcoin


The effect of the COVID-19 has brought in Institutional Players into the digital asset market, which has been long dominated by high-net-worth individuals and actively trading crypto enthusiasts.

India broker platforms that are known to mainly offer FX , earnestly look to offer cryptocurrencies for OlympTrade traders following a repeal of the ban by the Reserve Bank. One startup making a move to launch its crypto exchange.

BTCUSD: Technical Analysis

Monthly Chart

BTCUSD analysis - Monthly Chart - June 18

Monthly Resistance Levels: 19666.00, 13880.00

Monthly Support Levels:  152.40, 211.25, 262.85, 3122.28, 44265.00

The Moving Average has acted as dynamic support to the rise of BTCUSD since it found support at the 262.85 and 211.25 levels, respectively, in 2016. 

Brokers are looking at the current condition in the market, and if possible, the rejection of bitcoin price going lower at the support zone of 3122.28 and 4265.00 around the Moving average may increase the upward surge bitcoin.

 Weekly Chart

BTCUSD analysis - weekly Chart - June 18

Weekly Resistance Levels:  13880.00, 10500.50

Weekly Support Levels:  3122.28, 3322.19, 3873.95, 7469.00, 9312.00

If the Bullish momentum can be sustained and bitcoin closes above 10500.50 levels, it will expose the next level of resistance 13880.00.

The resistance has been tested multiple times and may be an indication of uncertainties in the market. Investors are uncertain about the risk in the market. We might get a drop in price in the coming weeks ahead. 

Daily Chart

Daily Resistance Levels: 10476.55

Daily Support Levels:  3837.30, 5869.00, 6542.91, 8109.00, 8630.00

As the bitcoin price is above the moving average, it shows that a bullish trend for bitcoin and price rallied from the 542.911 level to 10476.55 resistance level. 

The Bulls momentum failing to go above the resistance zone of 10476.55 has been lost for some days, after failing to go above the resistance.

In the coming days, if the bitcoin price closes below the moving average, we may see a downtrend and should price also closes below the 8630.00 level.

H4 Chart

H4 Resistance Levels:  10429.26, 10067.53, 10011.40, 9826.96

H4 Support Levels:  8642.39, 9078.91, 9121.74, 9374.20

From the chart above, we can see that prices are below the moving averages, and the bias is shifting to the bearish side on the H4 time frame.

According to Dow Theory, the H4 is gradually establishing higher lows and lower lows to show a downtrend.  Pandemic investors have been careful with their investments due to uncertainties in the market and the impact of the COVID-19.

If the support level of 9121.74 gives way, bitcoin will drop to the next level of support is at 8642.39.

Bullish Scenario:

On the higher timeframe, the bitcoin trend is bullish on the daily, weekly, and monthly time frames. The bullish trend is in a corrective stage until it establishes a definite reversal pattern before we say the bull’s trend has come to an end.

Bearish Scenario:

The bearish bias is highly supported on the H4 time frame, and we can see a strong rejection of price from the resistance levels to the downside. 

As the moments unfold, we shall know if it is just a correction of the daily movements or the beginning of a new trend.

Bitcoin BTC News Events 

The weak futures drove the Bitcoin upward surge to the $10476.55 high. The Indian brokers can see that the futures market and news around it can make bitcoin vulnerable. 

Analysts believe that 74% of the positions account for long contracts are from futures. The open interest calculates the number of active long and short contracts held by traders on futures exchanges. About 1.6 billion USD of bitcoin futures contracts is currently opened on OKEx and BitMEX. 

The traders in the future market are making good use of the leverage to their advantage because, futures exchanges like Binance, BitMEX support maximum leverage of 125x. These puts Traders in an advantage point of trading bitcoin with a large amount of borrowed capital.

However, bitcoin’s price should have an abrupt drop in the short period it may increase the probability of a downtrend. BTCUSD traders are trading with caution because of the rejection of price at the resistance levels.

Conclusion and Projection

The support for the crypto asset is on the increase, and the proof is in the number, and the crypto assets are becoming increasingly popular, which will instil confidence in the market as a whole. 

As the general acceptance of bitcoin increases, the possibility of bitcoin’s price to surge higher is possible in the coming days to come.

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