Bitcoin price after eight days of consolidation inside the 9200-9600 trading range managed to break to the upside. Bitcoin boosted after Fed’s Brainard said the Fed is conducting research into possible central bank-issued currency.
Fed Governor Lael Brainard said in an interview that “By transforming payments, digitalization has the potential to deliver greater value and convenience at lower cost,” The are also some risks as some of the new companies are outside the financial system’s regulatory guardrails, and their new crypto-currencies could pose threats in areas such as financial stability, illicit finance, privacy and monetary policy transmission. Fed is conducting research and experimentation related to distributed ledger (DL) technology and the potential use for cryptocurrencies, including the potential for a central bank digital currency (CBDC).
BTCUSD is 34.95% higher in 2020 in a strong start for all the cryptocurrencies. Ethereum is the outperformer the last two trading days, today is 3.54% higher at $210.76. While the Litecoin (LTCUSD) is 1.75% higher at $73.83.
Read our Best Trading Ideas for 2020.
Bitcoin Price Technical Outlook
Bitcoin is 0.71 higher at 9690 as the bulls are in full control now as the crypto pair breached the upper resistance of the recent trading range. Above that, bitcoin today tested the upper bound of the trading range and managed to return to positive ground. The bullish momentum is intact as long as bitcoin is trading inside the uptrend channel which started in early January.
On the upside, intraday resistance will be met at $9695 the daily high. The next resistance stands at 9762 the high from yesterday’s session and also the upper bound of the Bolinger Bands. In case of a breakout, more offers might emerge at 9954 the high from October 28th 2019.
If we have a correction, the first support for bitcoin will be met at $9521 the daily low. If bitcoin price breaks below that level, the next support stands at $9140 the low from yesterday’s trading session. The round $9000 mark will be the next support level.
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