Technical Analysis of BTC/USD for May 21, 2021

Crypto Industry News:

The Russian State Duma, the lower house of parliament, adopted a bill in first reading that obliges MP candidates to disclose whether they had previously bought any cryptocurrencies. The relevant provision is to be included in the electoral law. Candidates for seats in parliament will be required to disclose the amounts they have invested to acquire digital financial assets as well as the timing of the investment.

The bill, which has been proposed by the government, introduces the necessary changes after the adoption of the law "On digital financial assets and digital currency," informed the news agency Prime.

Importantly, however, the above rules apply when the total amount invested in cryptocurrencies has exceeded the total income earned by the candidate and their household in the last three years. At the same time, Russian politicians will have to provide details revealing the source or multiple sources of funds from which such transactions are financed.

The new legal act amends two important federal laws - the law "On the election of the President of the Russian Federation" and "On the election of deputies to the State Duma".

The amendments also apply to the acts defining the basic electoral rights of citizens of the Russian Federation, including the right to participate in referenda, and a number of other legislative acts. The updated law will enter into force in the first elections following its adoption.

Technical Market Outlook:

The BTC/USD pair has been testing the level of $41,794, which is just above the 38% Fibonacci retracement seen at $41,096. The other immediate technical resistance is seen at the level of $40,922 and $43,159. Please notice, the market still trades under the trend line resistance and under the zone located between the levels of $43,1459 - $41,794. The market is in full control of bears 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 (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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