08.09.202007:59 Forex Analysis & Reviews: Technical Analysis of BTC/USD for September 8, 2020

Crypto Industry News:

Bitcoin's price has dropped back to below $ 10,000 on major exchanges today. This is the key level testing time. The three factors that likely contributed to the sharp decline in Bitcoin's value are miners, a strong dollar, and profitable whales.

When Bitcoin's price suddenly fell 5% to $ 9,975 on Binance, BitMEX liquidations fell below $ 40 million. Typically, a sharp price movement cancels futures contracts worth over $ 100 million. Futures data suggest that the selling pressure came from the spot market. While this is possible, retail investors are unlikely to start losing aggressively above $ 10,500. The whales are more likely to cash in a profit at the $ 10,500 site that in the past served as a long-standing resistance level for Bitcoin, though the sell-off began since Bitcoin reached $ 12,000.

The gradual sell-off of BTC by miners since mid-August may have exerted significant selling pressure on Bitcoin, which is probably the second reason for the decline. However, vice president of Poolin Alejandro De La Torre stressed that keeping track of miners' inflows is difficult.

And the third reason - the US dollar. A common theme of the last two weeks - after Bitcoin consolidation - has been the strengthening of the dollar. It started to show signs of a rebound after four months of decline, while the euro started to decline. As both Bitcoin and gold are priced primarily in US dollars, and many BTC traders are based in the US, the rising dollar has contributed to a weakening of the BTC pace.

Technical Market Outlook:

The BTC/USD pair has made a new local low at the level of $9,854 and bounced yet back again towards the level of $10,343. The market keeps hovering around the level of $10,000 again as this is very important psychological level for market participants. The nearest technical resistance is seen at the level of $10,248, $10 343 and $10,430 and the nearest technical support is seen at the level of $9,704. The market conditions are oversold, but the momentum remains weak and negative, so another wave down might be just around the corner.

Weekly Pivot Points:

WR3 - $13,397

WR2 - $12,625

WR1 - $11,243

Weekly Pivot - $10,566

WS1 - $9,071

WS2 - $8,375

WS3 - $6,978

Trading Recommendations:

The weekly trend on the BTC/USD pair remains up and there are no signs of trend reversal, so buy orders are preferred in the mid-term. All the dynamic correction are still being used to buy the dips. The next mid-term target for bulls is seen at the level of $13,712. The key mid-term technical support is seen at the level of $10,463 and $10,000.