Technical Analysis of BTC/USD for August 23, 2021

Crypto Industry News:

The mayor of Cool Valley, Missouri, said he is investigating how to donate over $ 1 million in Bitcoin to the city's 1,500 residents.

In an interview with the St. Louis KSDK, Mayor of Jayson Stewart said he would like "every household in my city to receive a certain level of Bitcoin." Stewart said the funding was likely to come from "very supportive donors," but he did not rule out using the government's pandemic allowance to get the venture started.

The mayor did not specify how many Bitcoins the city would be able to transfer to each resident, but suggested it could be any amount up to $ 1,000 - around $ 1.5 million or over 30 BTC. But he also suggested that the funds may require Cool Valley residents to "breed" for five years.

"My number one concern is that someone will just sell their Bitcoins to pay the mandate, and when Bitcoin is going to cost around $ 500,000 in all these years, they will really regret it. (...) I feel this is basically the best way to satisfy everyone's basic needs - so that Bitcoin ends up in the hands of the people who can benefit most from it, Stewart said.

Stewart's initiative is similar to that proposed by Andrew Yang, a candidate for the 2020 US presidential election. Yang supported giving every American $ 1,000 a month as part of a Universal Basic Income. Although he did not receive a Democratic Party nomination, the income often took the spotlight of the media and had apparently strong support.

Technical Market Outlook:

The BTC/USD pair has made a new swing high at the level of $50,382 (at the time of writing the article). The next target for bulls is seen at the level of $51,147 and $52,330. The immediate technical support is located at the level of $49,733. The strong and positive momentum supports the short-term bullish outlook despite the overbought market conditions on the H4 time frame chart.

Weekly Pivot Points:

WR3 - $57,092

WR2 - $53,247

WR1 - $51,171

Weekly Pivot - $47,506

WS1 - $45,262

WS2 - $41,681

WS3 - $39,415

Trading Outlook:

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. The next mid-term target is seen at the level of $50,000. 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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