BTCUSD is set to close lower this week after the announcement of the planned launch of options trading on CME Bitcoin futures failed to lift the market sentiment on the asset.
The options trading facility on Bitcoin futures contracts are to be launched in the first quarter of 2020, pending regulatory approval. However, BTC USD continues to struggle to gather reasonable momentum for an upside push, after last week’s upside nullified the full extent of the measured move from the long-term descending triangle.
The weekly candle is capped at the 9887 price level, which is where the previous weekly high of June 16 is located. Previous highs close to that area were also found on March 11 and April 23, both in 2018. This area is the new near-term resistance. Medium-term resistance is found further north at 11300, where the 50% Fibonacci retracement from the November 2017 highs to the December 2018 lows is located.
To the downside, we see support at the recently broken resistance level of 8289, site of previous highs of the weekly candles of May 12 and October 13. These levels are expected to play reversed roles in supporting price below present levels.
Therefore, a break of 8289 to the downside opens the door once more to the 7707 price level, site of previous lows on the weekly candles of September 22 and 29 as well as October 6.
If price somehow gets some upside momentum and pushes through 9914, the door opens for a push towards 11300, with a minor resistance pitstop at 10900.Download our latest quarterly market outlookfor our longer-term trade ideas.
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