FX.co ★ Technical Analysis of BTC/USD for February 16, 2021

Crypto Industry News:

After a seemingly weekly breath, the bitcoin rate against the dollar suddenly soared higher. BTC briefly broke above $ 50,000, reaching $ 50,110 on Coinbase and $ 50,240 on the Bybit Singapore derivatives exchange.

The world's largest cryptocurrency also hit $ 50,000 at 5:16 AM on the Binance exchange after breaking through a massive sales wall.

A 30% increase over the past month, and an annual increase of over 400%, comes on BTC following reports that the investment cell Morgan Stanley is considering purchasing cryptocurrency.

The news about the purchase of bitcoins worth 1.5 billion dollars by Tesla does not fade. Additionally, Mastercard is announcing plans to open its network to cryptocurrencies, and BNY Mellon, the oldest bank in the US, offers bitcoin and cryptocurrency support.

Meanwhile, digital asset mutual funds continued to attract cash from investors.

Technical Market Outlook:

The BTC/USD pair has finally hit the $50,000 level. The next obvious target for Bitcoin is now $60,000. In the meantime, the local technical supports are: $45,902 and $43,720. The intraday support is $47,002. However, if the market is out of the main channel and the price is below the level of $43,125 ( overbalance level), then the chance for a deeper correction are high, so please keep an eye on this levels. Please notice, the momentum is now decreasing as the price go up, which might be the beginning for bearish divergence on H4 time frame chart.

Weekly Pivot Points:

WR3 - $65,941

WR2 - $57,841

WR1 - $54,644

Weekly Pivot - $45,671

WS1 - $42,441

WS2 - $34,081

WS3 - $31,183

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 $50,000. 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.