BTCUSD Weekly Outlook and Bitcoin Fundamentals, 11th March 2021
BTCUSD Forecast and Fundamentals for Bitcoin
The recent bullish rally of bitcoin in the market will interest the India broker as more investors invest in this cryptocurrency asset.
Recently, the drop in the market resulted from money managers selling off their treasury’s due to economic growth prompting managers to move out of risk-off markets and reinvest their capital into assets that would be most beneficiaries once the covid-19 restriction is lifted.
It led to a correction in the overvalued assets like bitcoin, stocks. At the same time, other sectors like energy, tourism, and banking went higher.
BTCUSD Technical Analysis
Monthly Resistance Levels: 50602.53
Monthly Support Levels: 28130.00
The BTCUSD created a double bottom pattern price action, having the price test the low of December 2018 at the region of 3124.00 during the covid-19 crisis before it got rejected for a bullish swing that broke the neckline of 19003.00.
This move confirms a bullish run on the monthly time frame.
The recent all-time high for bitcoin is 58819.85 of February 2021a s a result of big investors transacting in BTC and investing in BTCUSD.
From the RSI indicator, you can see that price has entered the overbought region, which may signal the bulls’ weakness if all things are equal.
However, it is not a guarantee that the price would respect the indicators signal immediately for a reversal.
We have to see a clear pattern for a bearish move before saying that the trend has changed.
Weekly Resistance Levels: 50645.00
Weekly Support Levels: 37857.00
As of February 15, 2021, the bearish divergence did play out, but it had a weak momentum in the cryptocurrency market that saw the bulls push back price towards the high of 58320.00 the weekly time frame.
If the Bulls can close above the high on its chart, we will likely see another bullish run for a new high.
As we look at the trend line connecting the low to the higher lows is still a sign of an uptrend. However, if the trend line should get broken by the bears, we may see more bears coming in for a take-over.
Daily Resistance Levels: 50855.00
Daily Support Levels: 46250.00
The BTCUSD is still on an uptrend on the daily chart as previous highs are broken after its correction phase.
The question is, can the bulls break above the resistance zone of 58352.80?
On the daily time frame, the Bulls have established support at the 43000.00 levels on February 28, 2021, pushing the bitcoin price higher for some days for a possible break or rejection.
We expect the bitcoin to retest the high of $58000 on the daily time frame. A break above will attract more investors into the market for another swing high.
We saw the bitcoin price drop from the high of $58000 that it reached as of February 21, 2021, and that is the psychological zone for the sellers as they expect the level to hold when the price retest the zones again.
Bitcoin BTC News Events
More celebrities are joining the campaign of promoting the crypto curries market and its staying power. Mark Cuban, a billionaire investor, states that cryptocurrencies have the technology to address society’s present and future needs.
Recently, he corrected the notion made by Peter Schiff Wall Street investors are making a dumb decision to invest in BTC and other digital assets. The approval of the $1.9 trillion coronavirus package by the Senate will boost the US economy.
This news comes with anxiety for fear of inflation that many bitcoin investors’ projects and the best safe-haven are the bitcoin asset and other digital assets.
More companies certainly plan to invest in BTC as a Norwegian holding Aker ASA reveals their plans and has allocated over 1160 BTC as default capital reserves.
Conclusion and Projection
The approval of the covid-19 package of President Joe Biden ($1.9 trillion) will have imparted on the US economy.
However, despite a recent drop in bitcoin, the long position traders and investors are looking at the psychological levels of $58000 to continue the uptrend.