FX.co ★ Technical Analysis of BTC/USD for March 18, 2021

Crypto Industry News:

Morgan Stanley will offer its clients access to bitcoin. According to the internal note of the banking institution, the product will be made available by Galaxy Digital and FS NYDIG.

With custody of assets in excess of $ 4 trillion, Morgan Stanley became the first major bank in the US to launch a product that offered cryptocurrency exposure to its clients. Sources cited by CNBC said the decision was made after Morgan Stanley succumbed to pressure from his clients.

Access to BTC through Morgan Stanley funds will be available to people with over 5 million dollars. Morgan Stanley says BTC is only suitable for people with "aggressive risk tolerance." Even these customers will be able to spend "only" 2.5% of their funds on cryptocurrencies.

Therefore, the minimum investment in funds will be $ 25,000 for the Galaxy Bitcoin Fund LP and FS NYDIG Select Fund. Galaxy Institutional Bitcoin Fund LP will require customers to invest at least $ 5 million.

Morgan Stanley also argues that bitcoin is now at the right time to become "an investable asset class." The report is cautious when it comes to direct recommendations for clients looking to get exposure to cryptocurrency. However, the document states that BTC may be at a critical time in adoption.

Technical Market Outlook:

The BTC/USD pair has broken through the short-term trend line resistance around the level of $58,233 and made a local high at the level of $59,414. The nearest technical support is seen at the level of $57,097 and if this level is violated, then the corrective cycle might expand towards the next technical support seen at $49,422. The next intraday technical resistance is seen at the level of $60,609. Please notice the market keep making higher highs on the daily time frame despite the bearish divergence building since the level of $41,917.

Weekly Pivot Points:

WR3 - $77,718

WR2 - $70,065

WR1 - $65,682

Weekly Pivot - $57,463

WS1 - $53,537

WS2 - $45,060

WS3 - $41,147

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.