Cryptocurrency Analysis

[IFX_Selena]

Technical Analysis of BTC/USD for April 26, 2021

Crypto Industry News:
In an interview with TV, Nassim Taleb, author of "Black Swan," spoke about his views on Bitcoin and how to hedge against risks in the current turbulent market.

He was asked about crypto assets with a focus on BTC given that an increasing number of investors are restructuring their portfolios with a new asset class.

Taleb criticized Bitcoin, describing it as a trick that is too volatile to be an effective currency rather than a safe hedge against inflation:

"There is basically no relationship between inflation and Bitcoin. None. I mean, hyperinflation and BTC are going to zero. There is no relationship between them."

He also believes that Bitcoin has the characteristics of a Ponzi scheme. He stated that Bitcoin is:

"(...) a beautifully configured crypto system that is well made but has absolutely no reason to be tied to anything economic."

Taleb once had a positive opinion about a leading cryptocurrency. However, he told CNBC that he was initially fooled into believing that Bitcoin could be used as a currency. But when he saw that the price of the cryptocurrency was very volatile and investors used it as a speculation tool, he started selling his Bitcoin, calling it a failed currency.

Taleb advises investors looking to hedge against inflation to buy a piece of land and invest in it. He also said that investors who are concerned about inflation are better off buying real estate than investing in Bitcoin. In February, the former analyst and trader announced that he is in the process of getting rid of his BTC. He considers it a failure due to the fact that the crypto asset does not hold value. He also said that Bitcoin has failed as a hedge against central bank policy.


Technical Market Outlook:
The BTC/USD pair has bounced strongly from the recent low made at the level of $47,060 after the Bullish Engulfing candlestick pattern was made. The bulls has managed to bounce through the level of $52,039, which is the technical resistance for the price and now are trying to make another higher high at the level of $53,290. The momentum is currently neutral and any breakout into the positive territory might extend the bounce to the level of $57,330.

Weekly Pivot Points:
WR3 - $62,642
WR2 - $60,057
WR1 - $52,987

Weekly Pivot - $50,187
WS1 - $42,706
WS2 - $40,371
WS3 - $33,169


Trading Recommendations:
Event despite the recent correction from $64,789 to $47,060 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 $50,000 is clearly broken on the daily time frame chart (daily candle close below $50k).







Sebastian Seliga
Analytical expert
InstaForex Group © 2007-2021