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Technical Analysis of BTC/USD for May 29, 2020
Crypto Industry News:
As part of his recent videoconference, Goldman Sachs addressed several topics about the “US economic outlook” and “implications of current policy.” The bank’s experts analyzed, among others topics such as inflation, gold and Bitcoin. The event took place yesterday. Unfortunately, cryptocurrency fans will not be delighted with the financiers’ conclusions.
Earlier, cryptocurrency market participants hoped that Goldman Sachs would look at cryptocurrencies differently. The more that since the beginning of the year BTC has gained a lot, and the fiat currency market is probably in the vestibule to the room with the inscription “high inflation”.
However, bank economists do not see the potential of BTC and believe that buying cryptocurrencies “has no real investment justification.” In addition, they believe that BTC does not represent a new asset class. Not only that, digital currencies based on blockchains do not generate profits through exposure to economic growth, they have not proved to be credible protection against inflation so far and are used to facilitate money laundering and shopping in darknet.
In fact, such statements are a huge disappointment, because it is quite easy to see that fiat currencies are also used for illegal activities, while BTC is still quite effectively fighting for the name of safe haven.
Technical Market Outlook:
The BTC/USD pair has broken through the short-term trend line resistance (marked as brown on the chart) and violated the 61% Fibonacci retracement of the last swing down around the level of $9,381. The nearest technical support is seen at the level of $9,249 and $9,013. The momentum is now strong and positive, so If the level of $9,569 is clearly violated, then the next target for bulls is seen at the level of $9,704. The larger time frame trend remains down.
Weekly Pivot Points:
WR3 – $10,568
WR2 – $10,245
WR1 – $9,478
Weekly Pivot – $9,098
WS1 – $8,333
WS2 – $7,968
WS3 – 7,231
Trading Recommendations:
The larger time frame trend remains down and as long as the level of $10,791 is not violated, all rallies will be treated as a counter-trend corrective moves. This is why the short positions are now more preferred until the level of $10,791 is clearly violated. The key mid-term technical support is located at the level of $7,897.
The material has been provided by InstaForex Company – www.instaforex.com
