FX.co ★ Technical Analysis of BTC/USD for May 27, 2021

Crypto Industry News:

Former cryptocurrency Carl Icahn, founder of Icahn Enterprises, said in an interview that he intends to enter the cryptocurrency market in a "big way" - teasing the market with reports of a cryptocurrency investment opportunity worth around $ 1.5 billion.

Icahn is an investor and former advisor in the Trump administration. In 2018, Icahn said in a TV interview that cryptocurrencies were "utterly ridiculous" and added, "Maybe I'm too old for them, but I wouldn't touch these things."

In his May 26 speech, Icahn explained that he was currently considering a large investment. He noted that his entry into the market "would not mean buying just a few coins":

"[...] a lot for us is a billion dollars, one and a half billion dollars ... I won't say exactly."

Icahn joins a growing list of other billionaires who have changed their minds about cryptocurrencies in the last 12 months. When asked about the cryptocurrencies he is watching in a special way, the billionaire is not inclined to overdo it. He stressed that:

"Many of the cryptocurrencies issued today will not survive, but we believe that cryptocurrency in one form or another can stay with us for longer. To be clear, we have never bought any cryptocurrency, although we are researching this topic."

Icahn believes that cryptocurrencies that do not at least serve as store of value will be driven out of the market because "there must be some form of value security" to survive.

Technical Market Outlook:

The BTC/USD pair has failed to break through the 38% Fibonacci retracement seen at $41,096 and reversed lower. The market still trades under the supply zone located between the levels of $43,1459 - $41,794, so 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).