FX.co ★ Technical Analysis of BTC/USD for July 22, 2020:

Crypto Industry News:

Changpeng Zhao, CEO of the Binance cryptocurrency exchange, is not sure what will bring Bitcoin back to $ 10,000, but he pointed out the token's recent stability.

In a media interview, Zhao, also known as CZ, commented on the cryptocurrency's record low volatility. Bitcoin has made very few big moves in weeks and the token remained between $ 9,000 and $ 9,500.

"I think it will explode sooner or later. But now Bitcoin was really stable. People were now calling it stablecoin," said CZ.

The president of Binance said Bitcoin was currently too closely correlated with traditional markets to be a safe haven that many investors hope for.

"The stock market is probably a thousand times bigger than the cryptocurrency market. When it goes down and many people lose a lot of money, many people who have investments in cryptocurrencies will want to convert those investments into cash."

Says Zhao.

However, in the long run, the CEO of Binance says "Bitcoin's safe haven properties will become apparent over time."

Technical Market Outlook:

The BTC/USD pair has broken above the short-term trend line resistance and moved up towards the supply zone located at the level of $9,381. The momentum behind the move is strong and positive, but the Pin Bas candlestick pattern has been made at the top of the move, so the market is consolidating in a narrow range. The nearest technical support is seen at the level of $9,290. If violated, the next one is located at the level of $9,202. Please notice, that bulls might continue the rally towards the level of $9,381 - $9,431.

Weekly Pivot Points:

WR3 - $9,569

WR2 - $9,411

WR1 - $9,271

Weekly Pivot - $9,117

WS1 - $8,968

WS2 - $8,812

WS3 - $8,862

Trading Recommendations:

The volatility on Bitcoin has been subdued for more than two months now, so the larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated. The key mid-term technical support is located at the level of $7,897.