BTC hit ATHs this week in what has marked a so far incredible year for BTC. The cryptocurrency started 2020 at $7200 USD and is up 165% since 01/01/2020 at $19300 USD. However, will BTC continue this upwards trend? Will BTC finally break $20000 USD?
BTC 1hr chart
BTC recently broke below the trend line on the hourly chart, which triggered the largest cryptocurrency market sell-off since March. BTC fell from $19800 USD down to $18300 USD, with alt coins seeing eerie red candles. However, BTC managed to successfully find support at $18400 USD, as indicated by the small black arrows. The support found in combination with the new descending trend line, has seen the potential formation of a descending triangle.
BTC/USD current formations
This triangle has the potential to break in either direction. However looking at the daily candles, a break above the descending trend line looks most likely. BTC will likely touch the $18350 USD again before a push above the descending trend line, propelling BTC towards a potential push beyond $20000 USD.
BTC/USD descending triangle
The last significant descending triangle which occurred was back in June, when BTC broke above the triangle sending BTC to $12000 USD.
BTC/USD descending triangle
BTC daily chart
On the daily chart BTC currently has a clear overhead resistance and trend line. This is identified as a broadening formation, due to the two lines moving away from each other. As BTC gets further through the formation, volatility will increase. This volatility will aim to push BTC above $20000 USD. The broadening formation has occurred due to sellers taking increased profits on their BTC, while people want to buy BTC so that they don’t miss out on potential substantial gains.
BTC/USD broadening formation
BTC/USD broadening formation
With BTC having bounced off from the broadening formation support line, traders will have all eyes on $20000 USD. If BTC can break above $20000 USD, then $22000 USD will be the next level for traders. However, if BTC rejects $20000 USD, then this could be the end of the current BTC bull run. In this scenario BTC would likely see a retracement down to $16200 USD.
BTC indicators
| Indicator | Bullish | Neutral | Bearish | Note |
| Bollinger Bands | X | BTC currently within the upper level of the BBs, finding support at the 20 SMA. The bollinger bands continue to remain bullish. | ||
| MA ADX | X | BTC candles are still above the MA ADX, with the indicator still green. Bullish. | ||
| SAR | X | The SAR has recently flipped to being below the candles. Looks like there is considerable bullish momentum with the SAR. | ||
| MACD | X | The MACD indicator is currently neutral, with the MACD having no histogram. Neutral. | ||
| PPs | X | BTC is currently between the central PP / R1. Therefore the indicator is bullish. | ||
| Gann HL | X | The Gann HL is currently blue and underneath the candles. Bullish. |
Indicators conclusion
In conclusion the indicators are bullish, with BTC looking set to continue its upwards trajectory. This is providing that BTC can break above $20000 USD.
BTC/USD indicators
BTC 1hr chart – potential long position
On the 1hr chart BTC currently has a potential long position set up. With BTC currently moving up with the trend line, BTC will likely hit the trend line again before continuing its move up. This move will see BTC head back towards ATHs, $19800 USD pushing towards $20000 USD. Moving towards $19800 USD from our current position is only a 3.5% gain. However with AAX futures contracts offering up to 100 times leverage on the BTC/USDT pair, there is potential to see higher rewards (higher risk) when trading BTC.
The potential long position scenario set up would have a stop loss at $18750 USD, while looking to close the trade at $19800 USD.
Potential gains/losses if scenario took place
| Leverage used | % loss if SL hit | % gain if profits taken at $19800 USD |
| X5 | 6% | 16% |
| X10 | 12% | 33% |
| X25 | 30% | 82% |
| X50 | 60% | 164% |
| X100 | Liquidation price – $19235 USD – 100% loss | 328% |
BTC/USD potential long position
When placing a futures trade, the leverage used for this trade can be adjusted from X1 – X100. Alongside this, with AAX you can use the futures calculator.
This allows you to see the following:
- ROE
- PnL
- Margin
- Liquidation price
While allowing you to adjust the opening/closing prices, leverage amount and much more. Visit AAX futures to find out more.
Written by, Oliver Page, on behalf of AAX
