FX.co ★ Technical Analysis of BTC/USD for May 25, 2021

Crypto Industry News:

Elon Musk posted another tweet on bitcoin, sending the price up by around $ 2,000:

"Spoke with North American Bitcoin miners. They committed to publish current & planned renewable usage & to ask miners WW to do so. Potentially promising".

As with all of Musk's tweets, this had an immediate and significant impact on the cryptocurrency markets. In just over 10 minutes, the price of bitcoin rose from around $ 38,000 to over $ 40,000.

Michael Saylor, CEO of MicroStrategy's business intelligence, said he held yesterday's meeting with mining companies such as Argo and Hut 8, also attended by Elon Musk. Saylor said miners present at the meeting "agreed to form the Bitcoin Mining Council - to promote transparency in energy consumption and accelerate sustainable development initiatives around the world," although it is not yet clear what exactly this means.

Technical Market Outlook:

The BTC/USD bounce has been capped at the level of $41,794, which is just above the 38% Fibonacci retracement seen at $41,096. The market still trades under the trend line resistance and under the supply zone located between the levels of $43,1459 - $41,794. Bears are still in full control of the market and only a strong breakout above the level of $41,096 (38% Fibonacci retracement of the last wave down) would temporary change the outlook to bullish. The next target for bears is May 19th low seen at the level of $29,701. The volatility is subdued and the momentum is now neutral.

Weekly Pivot Points:

WR3 - $58,682

WR2 - $52,643

WR1 - $41,961

Weekly Pivot - $35,513

WS1 - $25,163

WS2 - $18,359

WS3 - $7,655

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 $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).