Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of BTC/USD for March 24, 2021

Crypto Industry News:
The Turkish lira yesterday fell by more than 10% after the country's president Recep Tayyip Erdogan unexpectedly fired Naci Agbal, president of the country's central bank. After hitting a new low of 8,280 per dollar, the lira closed at 7.75 per dollar.

On the other hand, the day before the fall of the lira, Bitcoin became the most searched word in Turkey. As Google statistics show, the number of BTC searches increased by over 500%. This comes as concerns about inflation have risen after the Agbal overthrow.

Previously, Agbal, who advocated higher interest rates to tame inflation, helped make the lira "one of the most successful emerging-market currencies this year." According to the report, satisfied foreign managers responded to his policy by transferring funds to the Turkish economy.

However, some money managers have expressed concerns that the new governor Sahap Kavcioglu will pursue the populist policies that President Erdogan favors. However, in his preliminary comments following the appointment of Kavcioglu, who has been the fourth head of the central bank in less than two years, he tried to calm the markets by pledging to maintain the same goals as his predecessor.

Nevertheless, the new governor also undertook to "support economic stability by lowering borrowing costs and stimulating growth".

The report also states that Agbal's dismissal may have contributed to the decline of the Turkey's Borsa Istanbul 100 stock index by 9.8%. According to the document, this decline is the result of "the most violent sale since June 2013 (...)". Meanwhile, the Nasdaq-listed iShares MSCI Turkey fund fell by over 19% in turnover in the US.


Technical Market Outlook:
The BTC/USD pair had almost hit the 61% Fibonacci retracement located at the level of $52,213. The technical support at the level of $53,290 had been broken and the bulls bounced towards the level of $55,810 to test it again from below. Bulls might still try to rally above the short-term trend line resistance seen around the level of $58,223, so any breakout above this line will be considered as bullish with a target at $60,000 and above. The momentum is now weak and negative, which supports the short-term bearish outlook. The longer term trend is still up and intact.

Weekly Pivot Points:
WR3 - $68,853
WR2 - $64,700
WR1 - $61,327

Weekly Pivot - $57,323
WS1 - $54,318
WS2 - $49,983
WS3 - $46,876


Trading Recommendations:
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 $41,125 is clearly broken on the e daily time frame chart.







Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021