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BTC/USD Technical Outlook 25 February 2017

Bitcoin (BTC/USD) smashed year high price barrier enroute to record high price at $1121.93 on Coinbase. The all-time high was $1,230.68, reached on December 4, 2013, according to BTC price look set to match parity to Gold spot price on next target. For the latest rally, Bitcoin maintain the position as the best performing investment asset since 2016.

BTC/USD Weekly chart
BTC/USD price against Euro/USD and Gold from 2016.

Bitcoin price growth is connected with the speculations over the possible approval of the Winklevoss Bitcoin ETF by the Securities and Exchange Commission. The digital currency’s rate came amid speculation that the US Securities and Exchange Commission (SEC) could approve the establishment of the first Bitcoin exchange-traded fund, Reuters reported.

The SEC is set to decide by March 11 on approval of an exchange-traded fund (ETF) request filed almost four years ago by Cameron and Tyler Winklevoss. An ETF is normally an investment fund traded on stock exchanges, and includes assets such as stocks or bonds. Since 2008, establishment of actively managed ETFs is being authorized by the SEC.

If approved in mid-March, it would be the first Bitcoin ETF issued and regulated in the US. Three separate ETFs tracking the value of bitcoin have been filed with the SEC for approval.

In other cases, Bitcoin is being offered to average customers exactly as any other currency. For instance, the first bitcoin ATM was set up in Austria three years ago and was successful enough to inspire the launch of further ones. Vienna now has more than 20 bitcoin-friendly vendors ranging from restaurants, bistros, and bars.

Bitcoin was the best-performing currency in 2016, whose value more than doubled during the year. Its 126 percent rally came on the back of strong demand in China.

BTC/USD daily chart
BTC/USD daily chart. Data source:Coinbase

Important BTC/USD price levels to marked,

Year High – 1121.93 (February 25 2017)
Year Low – $734.64 (January 12 2017)
Data source:Coinbase

The vertical surge could facing some fake breakouts and pull back to the lower to the nearest key support zone before any future upward. But with the ETF decision looming, speculative play will cause additional frenzy activities.Just take a look below observed based the candlestick price actions and William Fractal theory.

Important Price Levels for the Immediate Term Based on Fibonacci Retracement Approach

Crucial Resistance Levels
R1 – 1164.01 (High on January 05 2017)
R2 – 1232

Crucial Support Levels
S1 – 1103
S2 – 1054
S3 – 1012

And The XBT/USD Futures (BTC7D) on BitMEX market

XBT/USD Futures daily chart
XBT/USD Futures daily chart BitMex.

Overall, the market still anticipating XBT to advances further. But the risk has jump tremendously on the peak price and the ETF date getting closer.

last price : 1008.50
Open Interest : 8,053,347
24H Turnover : 52,597.0098 XBT
Total Volume : 2,218,864,901
Contract Size : 1 USD per contract

On BitMex, the XTC derivative is in the form of a Futures Contract and allows traders to speculate on the future value of the Bitcoin / Bitcoin (XBT/USD) exchange rate. Traders need not have Bitcoin to trade the futures contract as it only requires Bitcoin as margin.
Trade Bitcoin on BitMex Futures

XBT/Yuan Futures (XBCH17) on BitMEX market

XBT/Yuan Futures (XBCH17) daily chart
XBT/Yuan Futures (XBCH17) daily chart BitMex.

last price : 8124.9
Open Interest : 1,040,462
24H Turnover : 1,554.2060 XBT
Total Volume : 124,420,391
Contract Size : 10 CNY per contract

XBCH17 is a XBT/CNY futures contract settling on Bitcoin and Yuan. Each contract is worth 10 CNY of Bitcoin. This contract is ideal for speculation. The expiry month code is H (March). Trade Bitcoin/Yuan pair on BitMex Futures

XBT/Yen Futures (XBJH17) on BitMEX market

XBT/Yuan Futures (XBCH17) hourly chart
XBT/Yen Futures (XBJH17) hourly chart BitMex.

last price : 137074
Open Interest : 105,254
24H Turnover : 1,544.3609 XBT
Total Volume : 3,659,406
Contract Size : 100 JPY per contract

XBCH17 is a XBT/CNY futures contract settling on Bitcoin and Yen. Each contract is worth 100 JPY per contract of Bitcoin. This contract is ideal for speculation. The expiry month code is H (March). Trade Bitcoin/Yen pair on BitMex Futures

BTC Exchanges and Charts With BTC #BTC Trading
BitMex Futures
Simple FX
Whale Club

Chart via tradingview, data source from coinbase and bitmex.

The author is a self-described cryptocurrency activist. Ironically, he is not involved directly on the development and mining. But a keen trader that specifically studying and analyzing the chart and prices based on zen principles of candlesticks price action techniques. And most importantly, he is always prone to deceiving price movements that can exposes to trading losses. So trading based on his personal opinions is extremely risky and not advisable.


Please do your own due diligence before making any investment decision. This article should not serve as investment advice. This post is mainly as reference and tutorial for trading on possible cryptocurrency breakout.

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