02.12.202009:04 Forex Analysis & Reviews: Technical Analysis of BTC/USD for December 2, 2020

Crypto Industry News:

Nicolas Maduro's regime continues to rely on cryptocurrencies to maintain economic solvency.

Via Instagram, the Engineering Brigade of the Venezuelan Army has launched the new 'Bolivarian Army of Venezuela Digital Assets Production Center'. As the video shows, at the center are various ASIC miners used to crack proof-of-work algorithms.

The new mining operation was presented by General Lenin Herrera. He said that the stated purpose of the mining operation was to "strengthen and self-sustain our Bolivarian Army units", later adding that the mining centers would generate an "unblockable source of income" and an alternative to "a system of trust blocked and controlled by colonial interests," referring to The United States, which imposed sanctions on many associates of the Maduro regime.

Venezuela has experienced historic inflation in recent months as oil prices plunged and the political turmoil took its toll before COVID-19. According to September reports, Maduro proposed the use of cryptocurrencies in order to avoid sanctions and gain access to financing from international allies. These intentions are not new. The Maduro administration has even gone so far as to launch and promote its own cryptocurrency Petro, which has had limited success.

On the other hand, the U.S. military is also keeping a close eye on Venezuela's cryptocurrency. Recently, Admiral Craig Stephen Faller referred to Maduro's use of cryptocurrencies and even went so far as to link their use to drug trafficking and terrorism, adding that the armed forces watch over all such operations.

Technical Market Outlook:

The BTC/USD pair had made a new all time high (ATH) at the level of $19, 891 (at the time of writing this article), but then reversed quickly towards the level of $18,211, so the big Pin Bar candles was made at the H4 time frame chart. The levels of $18,388, $18,000 and $17,644 will now act as a key technical support again. The momentum is still strong and positive, so the bulls have a chance to hit the level of $20,000 and then continue the up trend towards the new all time highs. Please notice, there is no indication of up trend termination on a daily, weekly and monthly time frame chart yet.

Weekly Pivot Points:

WR3 - $22,987

WR2 - $21,189

WR1 - $19,745

Weekly Pivot - $17,922

WS1 - $16,614

WS2 - $14,848

WS3 - $13,390

Trading Recommendations:

Bitcoin just made a new ATH and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $20,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $15,000 is broken.