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

Crypto Industry News:

The International Monetary Fund has previously spoken negatively about smaller countries, such as the Marshall Islands, which recognize digital currency as legal tender. Now IMF representatives want to meet the President of El Salvador to discuss the recent "legalization" of bitcoin in the country.

An IMF representative said Salvador's recent decision could raise legal and financial concerns.

At Thursday's press briefing from the International Monetary Fund (IMF), its spokesman Gerry Rice admitted that the group is already in talks with lawmakers in El Salvador about a loan to support the country's economy, following the approval of pandemic bailout funds last year. Rice added that the IMF team will meet President Nayib Bukele today, and that cryptocurrencies will also be a likely topic for discussion.

"The adoption of bitcoin as legal tender raises a number of macroeconomic, financial and legal issues that require very careful scrutiny," said Rice. "We are closely following the developments and will continue to consult with the authorities."

IMF spokesmen often expressed concerns about countries adopting the digital currency. In March, the group issued a similar warning against the Marshall Islands recognizing its digital sovereign currency (SOV) as legal tender, as it may pose similar legal and financial risks. In this case, a spokesman for the Fund assessed that the local economy of the islands had been strained by the economic impact of the pandemic and would probably not be corrected with a SOV.

Technical Market Outlook:

The BTC/USD 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 recent bounce from the level of $31,017 had broken the technical resistance located at the level of $34,834 already and the bulls are currently testing the trend line resistance around the level of $37,500. So far the bounce had ended with a Bearish Engulfing pattern at the top of the rally. Any violation of this line would likely lead to another wave up towards the supply zone. On the other hand, the next target for bears is May 19th low seen at the level of $29,701 and the first attempt to test this level had been made as the bears had pushed the price below the $33,000 towards the technical support at $32,156 (May 23rd low).

Weekly Pivot Points:

WR3 - $43,458

WR2 - $41,521

WR1 - $38,273

Weekly Pivot - $36,222

WS1 - $33,131

WS2 - $30,800

WS3 - $27,577

Trading Recommendations:

Even 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).