BTCUSD Weekly Outlook and Bitcoin Fundamentals , 4th November 2020
BTCUSD Forecast and Fundamentals for Bitcoin
Introduction
The U.S. election is a significant focus for the top Indian brokers and other investors worldwide. They want to know the outcome of the election, affecting the bitcoin market and other finical markets.
BTCUSD Technical Analysis
Monthly Chart
Monthly Resistance Levels: 20000.00, 14000.00
Monthly Support Levels: 11000.00, 4650.00
Can the Indian broker experience the scenario of November 2016, where the bitcoin price kept rising higher while the stochastic indicator shows overbought signals?
If the rise in bitcoin values should gain more momentum, we may see bitcoin create a new high above the 2017 resistance levels of 19666.00.
The resistance level could also come with a surprise should the bulls fail to overturn the zone to its advantage, therefore, allowing the bears bias to push back the bitcoin price as it did before.
Weekly Chart
Weekly Resistance Levels: 14100.00
Weekly Support Levels: 10950.00, 9798.76
As the new week unfolds in a new month with exciting events like the US election coming up in few days, we will likely see a big reaction from the resistance level to the upside or downside when the outcome of the election is made known to the general public.
The psychological levels are of interest to traders and investors as we approach the U.S. election, influencing the U.S. economy’s next direction, having passed through the COVID-19 crisis that affected the world’s economy.
Daily Chart
Daily Resistance Levels: 14100.00
Daily Support Levels: 13361.00, 11556.37, 10668.56, 9813.00
You can see the sizes of the candles are getting smaller and showing low momentum. XM.com Investors and other trading Institutions may want to trade safely while watching U.S. politics unfolds the winner in the coming days.
From the resistance levels of 14100.00, we may get a rejection from the psychological zones for bears to push back price towards the previous resistance turned support of August 17th, 2020.
However, if the bulls should hold their rally, we will see the 14100.00 becomes new support in the nearest future as the price increases.
H4 Chart
H4 Resistance Levels: 14100.00
H4 Support Levels: 12734.33, 12980.65, 13490.41
The BTCUSD pair has not been trending for the past 40 hours as the Presidential election gets closer and closer by the day. The bullish trend has not been trending after reaching the resistance zone of 14100.00.
From the Stochastic indicator, we may see the bitcoin price drops technically to the 12980.65 levels of the hidden bullish divergence on October 29th, 2020, if all things are equal.
Bullish Scenario:
The BTCUSD has been in a bullish trend based on the daily time frame, and we can see that it is resting after hitting the resistance zone.
If the next move can close above the resistance of 14100.00, we shall continue the bullish trend.
Bearish Scenario:
A bearish scenario may build up in the H4 time frame as we can see a weak bullish momentum from the resistance level of 14100.00 that may be a strong reversal zone to push back the price of bitcoin to a low of 12980.65.
Bitcoin BTC News Events
According to an investor, Tim Draper, he sees bitcoin rise to $250,000 a few years from now. He thinks that he has only been conservative about that. With the recent happenings of COVID-19, he sees the blockchain aspect as a solution to solving global shipping.
He said the pandemic led the U.S. government to print about $13 trillion, which was diluted by almost 30%, and a lot of people want value for their money and are looking for where to store it like in bitcoin.
Tim Draper sees Tokenization as a successive tool for its users who do business relating to global shipping and real estate. With the tokenizer, you can buy a piece of house to own a portion of the property, not buying the whole thing.
The shipping aspect will reduce logistic problems as people can own containers and keep track of them.
Conclusion and Projection
As the US election draws closer, Investors and Indian brokers are advised to play safe because of the high volatility it will bring into the market.
A close above the weekly resistance will mean continuing the trend, while a close below the support will bring a trend reversal.
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