FX.co ★ Technical Analysis of BTC/USD for December 31, 2021

Crypto Industry News:

Economic intelligence firm MicroStrategy added Bitcoins worth $94 million to its holdings.

MicroStrategy purchased 1,914 BTC between December 9 and 29 for $ 94.2 million, bringing the company's total holdings to 124,391 BTC, according to today's filing with the US Securities and Exchange Commission.

Since making its initial $250 million investment in Bitcoin in August 2020, MicroStrategy has purchased BTC for well over $3.7 billion using company funds in addition to selling convertible senior bonds in private placements to institutional buyers. There have also been instances where the company has made losses as some purchases have followed the price spikes in early 2021 when the BTC price was over $50,000.

The company's latest purchase of Bitcoin came after the cryptocurrency price dropped below $ 46,000 on December 29, when Bitcoin was volatile ahead of the new year.

Technical Market Outlook

The BTC/USD pair has bounced after a successful test of the trend line support around the level of $45,843 and is heading up in the last day of 2021. The key short-term technical resistance is located at the level of $51,913 (Pin Bar high) and $53,333. Despite the recent complex and time consuming corrective decline in form of ABCxABCxABC pattern, the larger time frame trend remains up and only a clear and sustained breakout below the wave C low at $41,678 would change the outlook to bearish again.

Weekly Pivot Points:

WR3 - $60,286

WR2 - $56,809

WR1 - $53,868

Weekly Pivot - $49,723

WS1 - $47,540

WS2 - $43,220

WS3 - $41,111

Trading Outlook:

The ABCxABCxABC complex corrective cycle might be terminated at the level of $41,678 and the market is ready to continue the up trend. According to the long-term charts the bulls are still in control of the Bitcoin market and the next long term target for Bitcoin is seen at the level of $70,000. This scenario is valid as long as the level of $39,474 is clearly broken on the daily time frame chart (daily candle close below $39,000 would be considered as a long-term trend change due to the lower low placement).