FX.co ★ Technical Analysis of BTC/USD for December 7, 2020

Crypto Industry News:

During November's 42% rally on Bitcoin, approximately 185,600 BTC that hadn't moved in at least 12 months were carried over in the chain. November's increase in Bitcoin prices caused more than 1% of BTC supply to come out of long-term storage.

According to 'hodlwaves' Unchained Capital, which measures the time that has elapsed since Bitcoin was transferred to the chain, about 15% of BTC that had not been transferred in five to seven years was eventually transferred in the chain.

Surprisingly, Bitcoin's short-term transfers in the chain fell in November, and the share of supply, which recently moved between one day and a week, fell from 3.72% at the start of the month to 2.94% on November 30. The biggest change in November happened in one week to one month, which shows the share of BTC supply, which recently moved between 7 and 30 days. In November, it rose from 6.28% to 8.20%.

Glassnode, a cryptocurrency market data aggregator, released another bullish indicator, estimating that nearly 19.6 million Bitcoin addresses were active in November. As such, November saw the second largest number of active wallets per month in Bitcoin's history, second only to 21.6 million active wallets in December 2017.

Technical Market Outlook:

The BTC/USD pair has been trading inside of the narrow range for most part of the weekend. The range is located between the levels of $18,559 - $19,625. However, the short term trend line had been violated recently and the bulls are trying to break out of the range towards the new ATH. If the level of $19, 888 (ATH) is clearly violated, then the next target for BTC is seen at the level of $20,000. Please notice, the momentum is not that strong as it was for the last two weeks, but it is still positive, so the bulls have the control over the market.

Weekly Pivot Points:

WR3 - $21,987

WR2 - $20,958

WR1 - $20,107

Weekly Pivot - $19,077

WS1 - $18,325

WS2 - $17,164

WS3 - $16,350

Trading Recommendations:

Bitcoin 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.