Technical Analysis of BTC/USD for January 22, 2021

Crypto Industry News:

BlackRock manages assets worth 7.81 trillion dollars. The fund wants to allocate funds to bitcoin futures. The world's largest mutual fund decided to take this step through two of its sub-funds. BlackRock's intentions are confirmed by documents submitted yesterday. They were received yesterday by the US Securities and Exchange Commission.

Each Fund may use instruments known as derivatives, which are financial instruments. Their value comes from one or more securities, commodities (such as gold or oil), currencies (including bitcoin), interest rates, loans or indices (a measure of value or interest rates, such as the S&P 500 index or the principal borrowing rate ) ".

Last month, BlackRock CEO Larry Fink suggested Bitcoin could "possibly" transform into a global market. It is worth noting that Fink has in the past declared a rather skeptical attitude towards cryptocurrencies.

"Bitcoin has captured the attention and imagination of many people. It is still an untested, fairly small market compared to other markets. You see these big giant moves every day. Can it transform into a global market? It's possible. "

"Having a digital currency has a real impact on the US dollar," added Fink. He also commented that assets such as bitcoin, Chinese digital Yuan, and Facebook's freshly renamed project make the US dollar "less important."

Technical Market Outlook:

The BTC/USD pair has dropped like a stone during the last 24 hours and broke below all of the important technical support levels including long-term trend line support around the level of $32,000. The bears have managed to hit the level of $29,000 before the market had a chance to bounce towards the level of $32,000 again. Nevertheless, the momentum is still weak and negative, so the outlook remains bearish. The next important technical support for Bitcoin is seen at the level of $25,000.

Weekly Pivot Points:

WR3 - $50,241

WR2 - $45,262

WR1 - $41,218

Weekly Pivot - $35,725

WS1 - $31,875

WS2 - $26,553

WS3 - #22,402

Trading Recommendations:

Bitcoin made another ATH and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $50,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $20,000 is clearly broken.

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The material has been provided by InstaForex Company - www.instaforex.com

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