BTC analysis for 02.03.2020 – Watch for potential downside on the BTC due to overbought condition and rejection of the median

By | February 3, 2020
InstaForex
BTC analysis for 02.03

Relevance up to 07:00 2020-02-04 UTC–8

Industry news:

Bitcoin Futures are once again in the limelight after Open Interest was found to have surged by over 60% since the beginning of the new year. According to the data provider, Skew markets, Bitcoin Futures reflected rising Open Interest among exchanges and stood at $4 billion.

The aggregated Open Interest was the least on Bakkt – $4.6 million, at the beginning of 2020. However, this changed as the year progressed and on 2 February 2020, it stood at $11 million. A similar trend of rising Futures contract was noted on other exchanges like CME, BitMEX, OKEx, Deribit, and CME as well.

Technical analysis:

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BTC has been trading downwards as I expected last Friday. Another stronger rejection of the Pitchfork median line was the key for the recent downside movement together with the lack of demand around $9.600.

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 $9.600

Support levels are seen at the price of $9.000 and $8.700.

*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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