Technical Analysis of BTC/USD for February 4, 2021

Crypto Industry News:

Mark Cuban, entrepreneur and owner of the Dallas Mavericks, referred to the recent clash between Wall Street and the Wallstreetbets Reddit community.

Millennials better understand the value of digital resources and grew up in a world where music was more often shared as a digital file than a physical object.

Blockchain technology, unforgettable tokens and smart contracts now allow any asset that can be represented digitally to act as a store of value, with provable rarity and without the many flaws of physical collectibles:

"This generation knows that a smart contract and digital good are a better investment than old school applications that must see, touch or feel."

Cuban further points out that stocks are just another digital store of value, and the new generation has simply found and exploited the ineffectiveness of the existing stock exchange system. They realized that by working together they minimize Wall Street's power and expose the hypocrisy of hedge funds and brokerage houses by issuing bills to millions of clients while crying terribly when the subreddit does the same:

"The fat and happy Wall Street has gotten sluggish and stale and stale, making it an easier target than anyone would have expected."

This year, Cuban has proved to be a greater supporter of cryptocurrencies than he previously admitted. A while ago, he knocked out several NFT limited editions on Rarible.

Technical Market Outlook:

The BTC/USD pair has broken out of the narrow zone located between the levels of $32,921 - $34,839 and broken through the long-term trend line resistance around the level of $36,872. The new local high was made at the level of $38,262. If the level of $38,862 is clearly violated, then bull might rally straight back to the recent local high located at $39,967 and even break higher. Please notice, the momentum on the RSI indicator is now on the positive territory, so the bulls are doing their best to resume the up trend.

Weekly Pivot Points:

WR3 - $46,671

WR2 - $42,502

WR1 - $37,109

Weekly Pivot - $33,428

WS1 - $27,789

WS2 - $23,603

WS3 - $18,571

Trading Recommendations:

Despite the recent corrective cycle the bulls are still 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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