Here are the key factors to keep in mind this week for Bitcoin trades:

• CBOE Withdraws ETF Proposal: The highly anticipated VanEck/SolidX Bitcoin ETF, which many believe will ignite the next rally in Bitcoin as institutional investors will provide capital, has been withdrawn by the CBOE amid a US government shutdown. Expectations were for the application to be rejected, therefore the CBOE decided to withdraw it and time it better. While the price initially decreased, price action recovered as traders widely ignored this development. This offered a very bullish signal that cryptocurrencies are not dependent on government decision, financial institution support or any single product or service. As traders ignore short-term negative developments from established players which the cryptocurrency space competes against, bullish pressures are building beneath which will ultimately lead to a strong rally.
• Long-Term Support at $3,500: It appear as Bitcoin is grinding out a new long-term support level around the $3,500 level with a support area between $3,500 and $4,100. The sideways trend inside this support area has allowed technical indicators to recover and an ascending support level is further increasing bullish pressure for a breakout. Each time price action approaches the $3,500 mark, this cryptocurrency is quickly pushed higher as buyers step in. Bitcoin has defended this level for several months now, with only a brief push lower, and the duration has increased its validity. It is currently unlikely that a sustained move below $3,500 will be sustainable, unless an unforeseen negative fundamental development occurs.
• Intercontinental Exchange’s Bakkt Platform: Bakkt, which continues to await regulatory approval in the US, launched yesterday as it is moving ahead and refuses to wait for the slow regulatory approval. Bakkt was initially scheduled to launch in mid December 2018. ICE is the owner of the New York Stock Exchange and many see the Bakkt BTC (USD) Daily Future as a strong sign from institutional investors. The futures contracts are one day, physically delivered contracts with a standard size of 1 BTC, quoted in US Dollar up to two decimals and a minimum price fluctuation of $2.50. This will be reduced to $0.01 on block trades of at least 10 BTC, there are no upper limits to price action and the fee will be $0.50 per transaction or $1.00 for a complete buy-sell trade. The only limit will be the 100,000 lots position limit per account. The Bakkt Warehouse, a custodial regulated solution, will be responsible for the settlement and delivery of Bitcoins. This is expected to increase daily trading volume once fully operational.
• Schnorr Signature Proposal Including Taproot: A proposed soft fork protocol update labeled the Schnorr Signature Theme is currently being developed. This is not only supposed to increase the speed at which transactions are verified, but also boost security as well as flexibility of Bitcoin. A number of well known Bitcoin Core contributors endorse this update, they include Pieter Wuille, Anthony Towns, Johnson Lau, Jonas Nick, Andrew Poelstra, Tim Ruffing, Rusty Russell and Gregory Maxwell. Once this soft fork is applied, Bitcoin could see a mini rally which in return may lead to an extended move in price action to the upside.

Should price action for the BTCUSD remain inside the or breakout above the $3,402.80 to $3,570.75 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ $3,480.00
• Take Profit Zone: $5,389.40 – $5,604.45
• Stop Loss Level: $3,321.75

Should price action for the BTCUSD breakdown below $3,402.80 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ $3,280.00
• Take Profit Zone: $3,000.00 – $3,089.50
• Stop Loss Level: $3,321.75

Open your PaxForex Trading Account now and add this cryptocurrency pair to your forex portfolio.