Technical Analysis of BTC/USD for May 12, 2021

Crypto Industry News:

Global interest in Dogecoin surpassed interest in Bitcoin for the first time. According to data from Google Trends, the values assigned to each cryptocurrency from May 2-8 are 56/100 points for DOGE compared to 48/100 for BTC.

DOGE searches over the past 12 months have often been closely correlated with Bitcoin's highs and lows. This week, however, shows not only no link, but also a higher level of interest in DOGE in absolute terms.

In mid-April, the coin gained 80% in value in just one day, achieving 5,000% annual returns. As the quintessence of the meme cryptocurrency, many spikes in asset prices have been fueled by social media posts. This mainly concerns the endorsement of Tesla CEO Elon Musk.

However, as noted in April, a high level of interest in an asset does not necessarily indicate its success in the markets. Indeed, this week has been noticeably bearish for DOGE, coinciding with its debut notoriety for the coin during Musk's performance on Saturday Night Live.

Technical Market Outlook:

The BTC/USD pair has bounced from the technical support located at the level of $54,719 ( low at $53,789) and might be going up towards the key short-term supply zone located between the levels of $60,000 - $58,322. The recent wave up has ended with a Pin Bar candlestick at the level of $57,939 but the momentum is slightly above the neutral line already, so the next target for bulls is seen at the level of $58,322 and $59,596. The larger time frame trend remains up as long as the level of $47, 707 is not clearly broken.

Weekly Pivot Points:

WR3 - $67,229

WR2 - $63,211

WR1 - $60,975

Weekly Pivot - $56,852

WS1 - $54,336

WS2 - $50,318

WS3 - $48,012

Trading Recommendations:

Event despite the recent correction from $64,789 to $47,060 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 $50,000 is clearly broken on the daily time frame chart (daily candle close below $50k).

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

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