Technical Analysis of BTC/USD for March 16, 2021

Crypto Industry News:

India is likely to pass a law that will make cryptocurrencies illegal in the country. In addition to the fact that trading and mining of cryptocurrencies would be illegal, the new law would also prohibit their possession. However, cryptocurrency investors will be able, without any legal consequences, to realize their profits within six months from the date of entry into force of the new law.

It is unclear whether the law provides for imprisonment for those who fail to comply with the provisions of the law.

While the details remain unknown, a law as passed would represent a huge blow to cryptocurrencies in any major economy. Although digital assets have been banned in China since September 2017, the Chinese can still legally own cryptocurrencies.

Unfortunately for the Indian cryptocurrency industry, commentators expect the bill will eventually pass the legislative process successfully as Prime Minister Narendra Modi's party has the required majority to vote it out.

Technical Market Outlook:

The BTC/USD pair has retraced 50% of the last wave up and is currently bouncing from the level of $54,012. The market is about to test the technical support located at the level of $52,466 - $52,039 as well. If this level is violated, then the corrective cycle might expand towards the next technical support seen at $49,422. The nearest intraday technical resistance is seen at the level of $55,091. Please notice the market keep making higher highs on the daily time frame despite the bearish divergence building since the level of $41,917.

Weekly Pivot Points:

WR3 - $77,718

WR2 - $70,065

WR1 - $65,682

Weekly Pivot - $57,463

WS1 - $53,537

WS2 - $45,060

WS3 - $41,147

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 $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 $41,125 is clearly broken on the e daily time frame chart.

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

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