Technical Analysis of BTC/USD for May 24, 2021

Crypto Industry News:

After the cryptocurrency market slump this week, Bitcoin lost around 24% of its value. Meanwhile, the anonymous email service ProtonMail has confirmed its support for the original cryptocurrency.

Despite the enormous volatility that has pushed Bitcoin's price below $ 30,000, ProtonMail said on Twitter that it continues to HODL its BTC to maintain its independence.

"Responsible financial diversification requires the ownership of certain assets outside of the traditional government-controlled banking system. Therefore, Proton will continue to HODL a significant portion of our reserves in Bitcoin to protect our independence."

By posting this message, ProtonMail is following in the footsteps of organizations such as MicroStrategy. Its CEO Michael Saylor said Wednesday that companies under his control have purchased approximately 111,000 Bitcoins, which are now worth $ 4.5 billion. These entities "did not sell a single satoshi, BTC, forever," said Saylor.

ProtonMail introduced Bitcoin as a payment option for ProtonMail membership in August 2017. The goal was to maintain a commitment to individual freedom and privacy. ProtonMail has previously announced that it has never cashed any of the Bitcoins it has accepted as payment. On top of that, the company also allows users to make donations in Bitcoin. There is a total of 2.2 BTC at the current address where users can send donations. It is currently around $ 74,000.

Technical Market Outlook:

The BTC/USD pair has been capped at the level of $41,794, which is just above the 38% Fibonacci retracement seen at $41,096. The market still trades under the trend line resistance and under the zone located between the levels of $43,1459 - $41,794. Bears are still in full control of the price 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. The next target for bears is May 19th low seen at the level of $29,701.

Weekly Pivot Points:

WR3 - $58,682

WR2 - $52,643

WR1 - $41,961

Weekly Pivot - $35,513

WS1 - $25,163

WS2 - $18,359

WS3 - $7,655

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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