FX.co ★ Technical Analysis of BTC/USD for April 29, 2021

Crypto Industry News:

April was a month when a lot was happening on the Turkish cryptocurrency market. The problems of depositors of funds from two large exchanges: Thodex and Vebitcoin were the most echoing. As a result of these events, the announcement of the creation of a Central Custodian Bank to increase the state's share in market turnover and "to eliminate the risk on the side of the counterparty, visible after the recent collapse of the stock exchanges," reported an anonymous high-ranking official to the media.

Cryptocurrencies are definitely not liked by politicians from the Justice and Development party (AKP), a group that has been in power in Turkey under the baton of President Recep Erdogan for many years. AKP politicians have repeatedly depreciated the idea of decentralized, electric money, reducing it to the role of a "financial pyramid" and "means of financing terrorism". The government in Turkey introduced regulations in April to limit the utility of cryptocurrencies on the internal market. The government's reluctance to blockchain technology is probably due to concerns about the diminishing importance of the national currency, the Turkish lira, which has been struggling with the problem of excessive devaluation for many years.

According to the insider, the action of establishing the "Central Trust Bank" is taken very seriously by the authorities and the Ministry of Treasury and Finance, the Capital Markets Council and the financial crime supervising body MASAK are to be involved in its creation.

Technical Market Outlook:

The BTC/USD pair has been capped at the level of $55,501 after the Pin Bar candlestick was made and the market is reversing the recent bounce. Any violation of the level of $52,620 (technical support for bulls) will be an indication of a local top in place. Any breakout below $51, 239 would likely accelerate the drop towards the swing low seen at the level of $47,707. 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).