FX.co ★ Technical Analysis of BTC/USD for May 28, 2021

Crypto Industry News:

One of the largest payment operators revealed that this would allow users to withdraw their digital assets to third party wallets.

Jose Fernandez da Ponte, vice president and general manager of the company's blockchain and cryptocurrency division, announced the new feature at the CoinDesk Consensus 2021 conference:

"We understand that these tokens are more useful if you can transfer them, so we're definitely exploring how we can let people transfer cryptocurrencies" to "and" from "Paypal addresses.

The news comes just seven months after PayPal first enabled cryptocurrency purchases on its platform. The above decision was then hailed as a milestone in the adoption of cryptocurrencies in the mainstream.

PayPal users will be able to send their cryptocurrencies to other wallets instead of just holding them with PayPal or selling them in fiat currency through a payout. However, neither Reuters nor PayPal have specified when the new cryptocurrency withdrawal functionality will begin to be supported. If this is similar to PayPal's decision to allow cryptocurrency purchases last fall, the first rollover of third-party wallets can be gradual and location-dependent.

Technical Market Outlook:

The BTC/USD pair has been clearly getting away from the 38% Fibonacci retracement seen at $41,096 and reversed below the local technical support seen at the level of $37,161. 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).