Technical Analysis of BTC/USD for March 8, 2021

Crypto Industry News:

Investor Raoul Pal stated that bitcoin's "high price" is just a mindset issue, and institutional investors do not see it the same way. This made it possible to compare the current BTC price increase with the one that took place in 2017-18. While the latter was mainly retail-oriented, this time the main players in the market are institutions.

In a podcast on what traditional investors think of bitcoin, Pal told Peter McCormack that price is a relative factor for the institution. Institutions are more concerned about the pace of adoption, the state of the law and the current market capitalization. According to Pal, the more the price rises, the more bitcoin's market capitalization prompts institutions to buy:

"Price is a function of this rising market cap ... but if you are BlackRock, you wouldn't look at it until it has hit close to a trillion dollar market cap."

In his view, traditional investors do not usually buy Fortune 500 companies on the basis of price increases. They are rather concerned about the effects of portfolio diversification on the assets and how they behave in the market cycle.

Pal believes that a market cap of one trillion dollars represents a structural shift in the market as well as the type of market participants in the cryptocurrency space:

"$10 trillion in assets will not drop to zero. $10 trillion belongs to individuals, retirement plans, and corporations. "

Pal concluded that the current state of the market looks "technically perfect". The only real thing that stands in the way of the influx of institutional money into bitcoin is that these large institutions need time to build the infrastructure to manage their cryptocurrency positions.

Technical Market Outlook:

The BTC/USD pair has been seen trading inside of the trading range located between the levels of $52,201 - $46,371, but is currently approaching the local technical support located ot $49,442. The momentum remains positive, but it points down already, so any violation of the level of $49,442 might be the trigger to do lower towards $46,371. The larger time frame trend remains up and there is no indication of the up trend termination of reversal yet.

Weekly Pivot Points:

WR3 - $61,059

WR2 - $56,697

WR1 - $53,887

Weekly Pivot - $49,123

WS1 - $46,093

WS2 - $41,457

WS3 - $38,335

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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