Technical Analysis of BTC/USD for June 3, 2021

Crypto Industry News:

The BitMEX cryptocurrency exchange has renewed a $ 100,000 grant to Bitcoin developer Calvin Kim for another year. Kim also received $ 50,000 in additional funding from the Human Rights Foundation. Kim is working on the Utreexo project from MIT to help scale Bitcoin.

The size of Bitcoin (state) - a database that lists who owns which digital coins - typically grows over time, creating additional burdens on the decentralized network of hard drives that support the network.

The Utreexo algorithm promises to significantly reduce the size of Bitcoin from a few gigabytes to less than a kilobyte.

With additional annual funding behind him, Kim can continue to collaborate on the project. BitMEX started financing his work already last year. "The financial stability has allowed me to focus on the further research and development of the Utreexo Project," Kim said in a statement.

Technical Market Outlook:

The BTC/USD pair volatility has decreased significantly, but the bulls are climbing higher step by step in the direction of the technical resistance. The recent local high was made at the level of $38,886 (at the time of writing the article). The momentum is still hovering around the neutral level of 50, but is not dropping lower and the price is still seen around the short-term trend line resistance. The market still trades under the supply zone located between the levels of $43,1459 - $41,794, so bears are still in full control of the market and only a strong breakout above the level of $41,096 (38% Fibonacci retracement of the last wave down) would temporary change the outlook to bullish. The next target for bears is May 19th low seen at the level of $29,701.

Weekly Pivot Points:

WR3 - $58,682

WR2 - $52,643

WR1 - $41,961

Weekly Pivot - $35,513

WS1 - $25,163

WS2 - $18,359

WS3 - $7,655

Trading Recommendations:

Even despite the recent correction 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 $70,000. Any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).

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

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