FX.co ★ Technical Analysis of BTC/USD for January 6, 2021

Crypto Industry News:

Mate Tokay, former CEO of Bitcoin.com, is taking legal action against the small-cap cryptocurrency for allegedly failing to pay it 37.5 million BRG tokens worth $ 525,000.

Tokay says he was never paid for his services, even though the project used his name to attract investment on the $ 8 million IEO Bridge.link three months ago. Bridge founder Sina Estavi offered to compensate Tokay at a "significantly lower amount" than agreed in the contract, adding that other advisers allegedly received similar treatment.

At current prices, the allegedly promised stock of 37.5 million BRG would be worth a total of $ 525,000.

Tokay further claims that the supply in circulation of BRG, which Bridge.link says is inaccurate. He informed "other cryptocurrency market leaders, price aggregation sites and relevant exchanges" of the "huge" discrepancy between alleged and actual and circulating BRG supply.

Tokaj warned that the divergence could expose BRG investors to "classic pump and dump", describing Bridge.link's actions as "market manipulation".

While CoinGecko's cryptocurrency market data aggregator does not currently list BRG supply or market cap data, CoinMarketCap ranks BRG as the 231th largest crypto asset with a capitalization of $ 141 million

Technical Market Outlook:

The BTC/USD pair has made new all time high at the level of $35,775, the up trend is being continued and there is no strong sign of trend reversal or termination. Moreover, the up trend is now going parabolic, almost vertical. The next mid-term target for bulls is seen at the level of $50,000. The nearest technical support is seen at the level of $32,000 and $30,000. Please notice, the level of $35,775 is very close to the 161% Fibonacci extension level of the main wave 1, located at $35,051.

Weekly Pivot Points:

WR3 - $46,938

WR2 - $40,854

WR1 - $37,989

Weekly Pivot - $31,477

WS1 - $28,840

WS2 - $22,622

WS3 - $19,555

Trading Recommendations:

Bitcoin made another ATH and bulls are in control of the market. The up trend continues and the next long term target for Bitcoin is seen at the level of $35,051, 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.