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BTCUSD Weekly Outlook and Bitcoin Fundamentals , 20th November 2020

BTCUSD Forecast and Fundamentals for Bitcoin


The US election has triggered another sentiment in the market as investor awaits the final declaration of the election’s presidential winner. 

The COVID-19 experience was an excellent pointer for institutions, Top brokers in India, and other investors as they saw the benefits of the cryptocurrencies during the pandemic.

BTCUSD Technical Analysis

Monthly Chart

Monthly Chart of BTCUSD (TradingView) - 16th November 2020

Monthly Resistance Levels: 19999.00, 20000.00

Monthly Support Levels: 12068.59, 4112.12

The bullish run started from 4112.12 low, which surged higher above the previous peak of 2020, and the trend is approaching the all-time high of 2017 (19999.00). 

A close above the resistance levels will be vital for the Indian brokers as they expect bitcoin to set a new record.

However, the indicator is in the overbought region, and some traders and institutions see the long position coming to an end. It could also be a trap for new investors who are not knowledgeable about the market movement who invest in the market’s wrong time.

Weekly Chart

Weekly Chart of BTCUSD (TradingView) - 16th November 2020

Weekly Resistance Levels: 17000.00

Weekly Support Levels: 10957.00, 9298.00, 3901.2

The COVID-19 pandemic was the wake-up call that led the Indian brokers and other Bigger institutions to invest big into the bitcoin market as a safe-haven. The weekly chart is a clear uptrend for weeks since the pandemic’s peak, looking at the support level (3901.25) of March.

The resistance level of 17000.00 may push back bitcoin’s price if the bulls run cannot takeout the resistance zone.  We may see a drop in price down to the 10957.00 levels should the bears control the market.

Daily Chart

Daily Chart of BTCUSD (TradingView) - 16th November 2020

Daily Resistance Levels: 16495.00, 17000.00

Daily Support Levels: 13357.71, 16170.18, 

Can the Bears take over the market from the resistance zone of 16495.00?

We need to see healthy reversal candle patterns from these levels. If bitcoin’s price must drop, the price needs to close below the support level of 16170.18, which will expose the 13357.17 zones.

On the other side, if we get a close above the 16495.00 levels, we may see the bulls rally continues for a new high before the end of the year 2020.

H4 Chart

H4 Chart of BTCUSD (TradingView) - 16th November 2020

H4 Resistance Levels: 16495.00, 

H4 Support Levels: 16170.18, 14818.00, 14350.23

The bulls are approaching the 16495.00 level for a possible takeover to take the price to a higher level if they can close above the zone.

However, the Indian brokers need to wait to confirm the trend continuation before long positions are opened. 

We may see another rejection of price at the resistance zone if the bull’s momentum should weaken at the region for a bearish swing towards the low of 14818.00.

Bullish Scenario:

A general bullish scenario based on the daily time frame as we expect the trend to continue in its direction once the price of bitcoin can close above the 16495.00 levels.

Bearish Scenario:

A general bearish scenario based on the four-hour time frame if the rejection of price can happen again from the 16495.00 zones to close below the 16170.18 level for a bearish swing.

BTCUSD News Events 

$2.3B in Bitcoin exchange currents overshadows the number of new BTC mined

BTC’s price is seen going up in its bullish rally while the BTC exchange outflow has dropped down to about 2.300 million from 2.5 million, which is the lowest since 2018 August. Almost the $2.3 billion worth of 145,500 BTC moved out of the exchanges when bitcoin’s value was around $16200.

The block reward halving comes up every four years of investment until the fixed supply of Bitcoin at 21 million gets reached, which is why we could see the surge in the bitcoin market.

A significant reduction of BTC on the exchanges is noticed, compared to mined visa vices the exchange outflows. If the demand for bitcoin should rises above the declining state of supply for BTC, it would force the price to go higher, which will mean a mid-term uptrend.

Conclusion and Projection

The BTCUSD chart has shown a general acceptance of the number one crypto by more prominent institutions, traders, and Indian brokers. For a better understanding of Bitcoin BTC investments, institutions are advised to adopt Grayscale’s AUM as a decent metric to measure institutional activity. 

The combination of the increase in capital inflows into various Institutions’ platforms and a decrease in the supply of Bitcoin availability on the exchanges show the level of rising demand for bitcoin as its value approaches the all-time high of its existences.

Grayscale published on Nov. 14, the company’s net assets under management (AUM) attaining the $9.8 billion mark and just $200 million shy of earning $10 billion in AUM.


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