Technical Analysis of BTC/USD for May 19, 2021

Crypto Industry News:

The largest cryptocurrency in the world by market capitalization is currently changing hands for around $ 38,600. According to CoinGecko data, this is the lowest price level in 14 weeks.

The overall decline in the cryptocurrency market continued over the past week and continued after yesterday's reports that China was repeating the country's 2017 stance on the cryptocurrency ban.

The National Internet Finance Association of China (NIFA), China Banking Association (CBA) and Payment and Clearing Association of China (PCAC) jointly issued a note on Tuesday evening Chinese time in which they advised their member financial and payment institutions not to engage or provide services to companies related to cryptocurrencies.

All three bodies are self-regulated organizations under the supervision of several Chinese ministries, including the People's Bank of China (PBoC) and the China Securities Regulatory Commission.

Data from Bybt shows that more than $ 1 billion in futures markets has been liquidated in the past 24 hours. Half of them are long positions in bitcoin.

Technical Market Outlook:

The BTC/USD pair has made another wave down to the level of $38,600 and bounced off the lows. The immediate technical resistance is seen at the level of $40,922, $41,821 and $43,097. Please notice, the market still trades under the trend line resistance and under the zone located between the levels of $43,097 - $41,794. The market is in full control of bears and only a strong breakout above the level of $46,371 would temporary change the outlook to bullish (but still corrective in nature).

Weekly Pivot Points:

WR3 - $67,286

WR2 - $62,987

WR1 - $51,788

Weekly Pivot - $47,852

WS1 - $35,984

WS2 - $32,386

WS3 - $20,567

Trading Recommendations:

Event 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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