BTCUSD Weekly Outlook – May 27, 2021

Last Updated on May 29, 2021

BTCUSD Outlook

Introduction

The number one cryptocurrency coin fell from its ATH during the recent pullback which saw some institutions take profit while some new BTCUSD investors are selling off their coin. However, the demand for bitcoin remains intact from the RaceOption broker and long-term holders.

On-chain analyst, Willy Woo believes that over-leveraged BTC derivative long trading was a major catalyst to the price slump.

BTCUSD Technical Analysis

Monthly Chart

BTCUSD monthly chart - 27th May 2021

Monthly Resistance level 64665

Monthly Support level 9825

The BTC has not had a major drop in price since last year as it did recent. Could the pullback be the beginning of the correction phase in the Bulls market or could it be a minor dip for another bullish rally to build up its momentum for a close above the resistance level of 64665?

If the bulls can push back the BTC value above the resistance, the uptrend will continue. 

We may see the Bears react to the Bulls advancement if the momentum is week around the zone which will cause the bitcoin market to experience a very strong correction downwards to the previous all-time high of the 2017 zone which will act as a support after the price of bitcoin broke through resistance levels. 

As the BTC became a safe haven for institutions and investors and bitcoin brokers during the COVID19 pandemic.

Weekly Chart

BTCUSD weekly chart - 27th May 2021

Weekly Resistance levels 64840, 59491

Weekly Support levels 38532.8, 30000

The weekly time frame shows sellers could hold the resistance zone of 64840 for weeks before they took the price down to 30000 level. For this new week, we expect the price to retest the resistance zone for a breakout above or to retest the zone before another bearish move.

If the stochastic indicator is anything to go by, we expect the bulls to take the price up for the week as we can see the signal line in an oversold zone showing a likely reversal of the trend during the week.

The bullish surge may take the BTC price high to the resistance level of 59491 and 664840 if the Bulls have the momentum in the market. If they can close above the level, they will establish a new high but if the price should fail, we will have a double top and a fresh selling pressure will probably take the price of bitcoin to a lower low.

Daily Chart

Daily Resistance level 64970

Daily Support level 30010

The BTCUSD is bearish on the daily chart as the bitcoin brokers and other Institutions had opened short position because of the recent events happening in China and other parts of the world.

In the daily time frame, we can see that bitcoin has found support around the 30010 levels. The coin might be able and to bounce back to the resistance level if the buying momentum can overturn the bearish sentiment.

We expect the week to be bullish as the market recovers from the dip that took some profits away from short-term holders, however; the market remains bearish in the midterm projection.

Bitcoin BTC News Events 

Senator (Wyoming) Cynthia Lummis points to bitcoin as a freedom-friendly form of money for those individuals who are oppressed by their governments and inflation is causing havoc in the economy. She shared her views based on the recent crackdown on BTC mining by the Chinese government and has been positive about bitcoin been a bullish run; They identified her as a libertarian. 

The Wyoming senator was among the few selected to oppose the recently proposed STABLEACT which will probably make it a regulatory capture against the free market in the crypto market.

Mustafa Yilham an overseas entrepreneur for Chinese bitcoin mining firm Bixin have moved the operations to other countries and many mining machines will be made available, hoping a large number of the machines won’t be in a single country but for it to be well decentralized. 

He also stated that there’s a need for all mining operators involved in the mining process both old and new operators outside of China are to use renewable energy.

Some miners have sold off their bitcoin due to panic while some are selling it because there is no access to the western hosting sites and are left with no choice but to sell it.

During a recent meeting in North America, the CEO of MicroStrategy Mr Michael Saylor the host and leading BTC miners in America stated the need of forming a BTC mining council. He stated that an agreement was reached to promote energy usage transparency and speed up sustainability initiatives worldwide. 

Those in attendance at the meeting are Agro Blockchain, Core Scientific, Galaxy Digital, Riot Blockchain, Marathon Digital Holdings, Blackcap, Hut 8 Mining, and Hive Blockchain. They all have roles to play to standardize energy reporting, educating and developing the marketplace and pursuing industry ESG goals.

Positive signs are emerging from bigger institutions as more billionaires like hedge fund manager Ray Dalio are buying bitcoin. Goldman Sachs hedge funds are among the active traders in the crypto market seeking to profit from the structural liquidity in the market.

Conclusion and Projection

They attributed the recent market correction to some FUDs which led to the sell-off of BTC among new investors. Many bitcoin brokers and other analysts expected the pullback because the price cannot move in a single direction. 

The shakeup will remove the weaker hands from the market, that is why the demand for BTC is high from institutions who understand the financial potential it holds for the future.

James S. Martin
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