21/05/2021
STAY AWARE OF BTCUSD MOVEMENT
What happened earlier
The BTCUSD pair gained its strength but remained one-third below the all-time high from a month ago. The Chinese government decision to set restrictions on cryptocurrency transactions within the country caused a crash to 29,000. The rebound mentioned above may ease the pain from this recent crash, but no outlook involves a bullish trend. Contrarily, more selling built on forced liquidations with margin calls will occur, the more panic and violent moves will be. The JP Morgan analytics predict that the investors will be exchanging bitcoin for gold.
What the picture is now
The Bollinger Bands predict moderate volatility as they begin to diverge. The RSI, which is above 50, points towards an upwards movement while the Stochastic, which is in the overbought zone, suggests a possible correction downwards.
What the possible outcomes are
In our most likely scenario, the BTCUSD pair may rise towards the first resistance level of 42,616.12.If the pair manages to surpass the first resistance level, we should expect a continued surge towards the second resistance level of 45,528.91.Contrarily, the pair may initially decline towards the first support level of 37,910.02.If the pair falls below the first support level, we can expect a continued downtrend towards the second support level of 34,603.71.