BTC analysis for 01.31.2020 – Watch for potential downside on the BTC due to overbought condition and rejection of the median

By | January 31, 2020
InstaForex
BTC analysis for 01.31

Relevance up to 06:00 UTC–8

Industry news:

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Bitcoin has dominated the cryptocurrency Futures market, but Ethereum might soon have its own similar product, according to Tarbert. The Chairman of the U.S. Commodities Futures Trading Commission (CFTC) appeared in a recent interview where he offered his views on numerous topics, including the cryptocurrency market.

He talked about the two largest digital assets, Bitcoin and Ethereum, saying that both “fall under our jurisdiction.” He continued by outlining his agency’s actions towards the cryptocurrency space and specifically the Futures market:

“We are doing a lot in the digital asset space. We are seeing exchanges started to list; certainly, we have seen Bitcoin Futures, both cash-settled as well as physically-delivered. My guess is we are going to see Ether Futures as well. And as things start to migrate into the commodity space, we will see even more.”

Technical analysis:

BTC has been trading downwards as I expected yesterday. The rejection of the Pitchfork median line was the key for the recent downside movement together with the lack of demand around $9.530.

Watch for selling opportunities and potential rotation down towards the $8.972 and $8.792.

MACD oscillator is showing decreasing on the buying power, which adds confirmation for further downside.

Major resistance is set at the price of $9.530

Support levels are seen at the price of $8.970 and $8.790.

*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade.

Performed by Petar Jacimovic,
Analytical expert
InstaForex Group © 2007-2020

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