FX.co ★ Technical Analysis of BTC/USD for May 11, 2021

Crypto Industry News:

As one of the world's leading privacy advocates, Edward Snowden believes that Bitcoin is not private enough. Moreover, the long-awaited Taproot update could, in his opinion, make things worse.

Snowden's comments sparked outrage from other activists such as Alex Gladstein. The director of strategy at the Human Rights Foundation believes Snowden incorrectly provided an update known as the Taproot. Others have argued that he does not see the real importance of mainstream adoption of the project.

"Cryptocurrency - and by that name I am talking about Bitcoin - really fails comprehensively, terribly when it comes to privacy," said Snowden Marty Belcher of the Electronic Frontier Foundation at the Ethereal Summit on Thursday. The fire was fueled by the confession that Taproot was not as good a solution in this regard as the lion's share of the community expects.

Taproot, which was first proposed in early 2018, is in the process of being implemented as part of the Bitcoin protocol itself. When it goes online, it aims to improve privacy as well as scalability and security.

Technical Market Outlook:

The BTC/USD pair had been rejected from key short-term supply zone located between the levels of $60,000 - $58,322 and fell out of the short-term ascending channel zone.The bearish Engulfing candlestick pattern was made at the top of the rally. The local low was made at the level of $53,789 and the bearish pressure is increasing. The momentum is below the neutral line already, so the next target for bears is seen at the level of $52,291, $52620 and $51,239.

Weekly Pivot Points:

WR3 - $67,229

WR2 - $63,211

WR1 - $60,975

Weekly Pivot - $56,852

WS1 - $54,336

WS2 - $50,318

WS3 - $48,012

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).