BTC/USD Price Analysis: Despite Amun Bitcoin ETP, Bitcoin is Technically Bearish


Bitcoin Price Analysis–Nov 19

Latest Bitcoin News

In 10 years, blockchain and Bitcoin have gone from a Cypherpunk, Libertarian geek thing to a solution and an avenue for people to move funds across the world by-passing banks. Now aside from being a cross-border platform, Bitcoin as the most popular and valuable coin in the space is quickly evolving into an instrument through which corporations in finance and banking can build tradable instruments on it. There have been attempts with Bakkt getting approval from the CFTC and now talks of an exchange-traded product to propel Bitcoin from the grip of sellers. As the US SEC deliberate on the way forward and whether to approve nine different Bitcoin ETF proposals now that the commenting window has been closed, the main exchange in Switzerland has given the green lights for the world’s first Bitcoin ETF, the Amun Crypto ETP.

The ETF which shall be compliant with all the relevant laws–just like traditional ETFs, shall be available at the SIX Swiss Exchanges, the fourth largest exchange in Europe with a market cap of CHF 1.6 trillion. The promoters of the index fund say Amun ETF will be a conduit for investors—retail or institutions—keen on investing in an asset class via a regulated exchange whenever they don’t feel the need of setting up custody for their digital assets or when local laws prohibit investment in cryptocurrencies. 50 percent of the Amun Crypto ETP shall comprise of Bitcoin and the rest split between Litecoin, XRP, BCH, and Ethereum.

BTC/USD Price Analysis

Weekly Chart

It’s pretty clear. Bitcoin like the rest of the market is bearish dropping 13 percent in the last week in the process clearing important support levels of $6,000 and $5,800. Many are pointing these declines to the unnecessary war between Bitcoin Cash SV and ABC that has since seen the network split once more but before these fundamental events, technical indicators were hinting.

Though we were net bullish days after the strong jut of the week ending Oct 21 when BTC/USD prices surged above the main resistance trend line and $7,200 igniting bulls, losses of Nov 14 did thrash all of our previous projections.

Instead what we now have is a clear bear breakout bar below $5,800 or 2018 lows accompanied by high volumes as bear trend set in motion by week ending Sep 9 resumes. Since all of our trade conditions have been met, we recommend conservative traders to sell on pullbacks with first targets at $4,500. Stops should be at last week’s highs at around $6,200.

Daily Chart

As mentioned above, we remain net bearish and as long as BTC/USD prices trend below $6,000 and most importantly $5,800, bears are in charge. After all, losses are steep and confirming Nov 14 break below $6,300 nullifying our bull projection, two full candlesticks have since printed below $6,000.

Moving on, aggressive—risk-off traders should search for selling opportunities on every pull back with first targets as aforementioned. Meanwhile, gains above $6,300 reversing last week’s losses effectively cancel this trade plan jolting us back to neutral.

All Charts Courtesy of Trading View

Disclaimer: Views and opinions expressed are those of the author and aren’t investment advice. Trading of any form involves risk and so do your due diligence before making a trading decision.