FX.co ★ Technical Analysis of BTC/USD for May 17, 2021

Crypto Industry News:

Between 2020 and 2021, Square bought over $ 200 million worth of Bitcoins. Currently, the payment company does not anticipate buying more assets, according to its chief financial officer Amrita Ahuja:

"At the moment we have no plans for further purchases. [...] There are no plans at the moment to reassess where we are from a financial standpoint.

In October 2020, Square announced the purchase of Bitcoins worth $ 50 million, which was equivalent to 4,709 BTC, given the asset prices at the time. In February, the company announced that it would collect additional Bitcoins worth $ 170 million, or roughly 3,318 coins.

May saw Bitcoin's price sideways and downwards, although Square continued to record a significant profit from its BTC holdings.

"In Square's latest quarterly results, released on May 6, the company said it lost $ 20 million on its Bitcoin investments, despite rising to $ 472 million based on market prices."

However, Square Bitcoin's involvement does not stop with asset purchases. The Cash App company allows free Bitcoin transactions, unveiled in March. The Square Cash app also supports Bitcoin trading.

Technical Market Outlook:

The BTC/USD pair has made another wave down to the level of $42,261. The zone located between the levels of $43,097 - $41,794 is the key short-term demand zone and any violation of this zone will lead to another wave down towards the level of $40,942 and $39,969. The immediate technical resistance is seen at the level of $45,710, $46,371 and $47,077. The market is in full control of bears and only a strong breakout above the level of $47,077 would temporary change the outlook to bullish (but still corrective in nature).

Weekly Pivot Points:

WR3 - $67,286

WR2 - $62,987

WR1 - $51,788

Weekly Pivot - $47,852

WS1 - $35,984

WS2 - $32,386

WS3 - $20,567

Trading Recommendations:

Event despite the recent correction 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).