FX.co ★ Technical Analysis of BTC/USD for March 5, 2021

Crypto Industry News:

Goldman Sachs' Gary Black closed his position on TSLA after the company bought BTC for $ 1.5 billion, avoiding a 28% crash. Now he is calling on the company to sell acquired bitcoins to buy back shares. Former CIO Goldman Sachs sparked this suggestion lively discussion on Twitter. '

On February 8, news came out that Tesla had purchased BTC worth $ 1.5 billion. The TSLA share price fell 28% from $ 863.42 to $ 621.44.

Black suggested that TSLA would attract more fund managers with a share buyback program, considering them more valuable to the investor than buying BTC "with excess cash".

Some Twitter users agreed that share buyback appeared to be a more appropriate way to use the funds, while others felt that too much attention was being paid to what Tesla did with 8% of their cash reserves.

Technical Market Outlook:

After the BTC/USD bounce had been capped at the level of $52,506, the price reversed towards the technical support located level of $48,021. This level had been violated as well, so the BTC/USD pair trades close to the next technical support located at $45,710. Due to the weak and negative momentum the bears might intensify the pressure and push the market lower towards the key short-term technical support seen at $43,097.

Weekly Pivot Points:

WR3 - $66,669

WR2 - $61,820

WR1 - $52,326

Weekly Pivot - $47,444

WS1 - $38,017

WS2 - $33,139

WS3 - $23,184

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 $60,000. 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.