Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of BTC/USD for 01 February 2021

Crypto Industry News:
MicroStrategy entered bitcoin last year amid concerns about the devastating effects of inflation and a weakening dollar. Now he encourages other corporations to do the same.

As the company's CEO Michael Saylor writes on Twitter, MicroStrategy will release a bitcoin "guide" for the corporation. The study will be shared during the "Bitcoin Summit 2021" event that the company is organizing next week, on February 3 to be precise:

"We are going to open source our #Bitcoin Corporate Playbook, an array of documents covering governance, legal, financial, technical & accounting considerations. Get the briefing & early access at our Bitcoin for Corporations conference Feb 3/4".

The release of the guide is part of a larger MicroStrategy event that will be attended by leaders in the cryptocurrency industry. The organizers announced that a number of topics related to bitcoin will be discussed during the conference.

Meanwhile, MicroStrategy does not intend to stop at the current BTC purchases. Saylor said yesterday that as it continues to grow, the company will continue to invest any "excess cash in bitcoin" and acquire even more assets as part of its wider corporate plans.


Technical Market Outlook:
The BTC/USD pair has broken through the short-term trend line resistance and made a local high at the level of $38,638. Nevertheless, the breakout was very short-lived as the Bearish Engulfing pattern was made at the top of the rally. Since then the market has returned to the range zone located between the levels of $32,175 - $34,893. The momentum returned to the neutral level and the price is trading below the long-term trend line resistance. If the bearish pressure intensify more, then the next target is seen at the level of $28,930 - $28.471.

Weekly Pivot Points:
WR3 - $46,671
WR2 - $42,502
WR1 - $37,109

Weekly Pivot - $33,428
WS1 - $27,789
WS2 - $23,603
WS3 - $18,571


Trading Recommendations:
Despite the recent corrective cycle the bulls are still in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $50,000, so any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $20,000 is clearly broken.





Sebastian Seliga
Analytical expert
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