Technical Analysis of BTC/USD for March 1, 2021

Crypto Industry News:

At the time of writing this text, the price of Bitcoin is close to USD 46,000. Since its peak 7 days ago, the most popular cryptocurrency has already slipped by 25%.

However, some market analysts say the current situation is very favorable in the long term. Ki Young Ju claims that the cryptocurrency market is ruled by 3 large groups: institutional investors, whales and miners. So far, the latter seem to be winning the battle.

Glassnode noted that Bitcoin's Daily Spending Out Profit Rate (SOPR) saw a "full reset." It therefore offers a chance for potential increases.

The SOPR basically shows whether individual Bitcoins are making a profit or a loss at the time of the transaction. This key indicator turned negative for the first time since September 2020. In other words, investors are now moving BTC on average with a slight loss, suggesting that according to Glassnode the level of profit taking has declined.

Meanwhile, the popular trader Philip Swift, co-founder of the Decentrader trading platform and creator of the Golden Ratio method, also drew attention to the SOPR crash. He sees this as a potentially bullish BTC return coupled with last week's derivative funding rate reset as such events coincided earlier with the start of new uptrend.

Technical Market Outlook:

The BTC/USD pair has bounced from the low seen at the level of $43,121 and is currently trying to break higher above the level of $47,000. The next target for bulls is seen at the level of $48,021 - $48,335, but even if this level is hit, then the next most important target for bulls is the overbalance level located at $50,265. As long as the market trades below the overbalance level, the correction might develop. The intraday technical support is located at $45,710.

Weekly Pivot Points:

WR3 - $66,669

WR2 - $61,820

WR1 - $52,326

Weekly Pivot - $47,444

WS1 - $38,017

WS2 - $33,139

WS3 - $23,184

Trading Recommendations:

The bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $60,000. Any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $41,125 is clearly broken.

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

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