FX.co ★ Technical Analysis of BTC/USD for February 23, 2021

Crypto Industry News:

The high volume of the transfer to the Bitcoin exchange wallet on February 21 aroused many questions and controversies.

The entity (or group of entities) has transferred approximately 28,000 BTC worth more than $ 1.5 billion to an address that is said to be part of the OKEx OTC service. A certain @ThisIsBullish on Twitter noted that the OTC address had additionally assigned BTC to several wallets, one of which allegedly belongs to a "rich" address that has been linked to multiple cloud mining and money laundering scams in Asia.

Stock exchanges have seen huge drops in BTC reserves recently. They fell by around 635,000 compared to the March 2020 peak. They largely coincided with a period of increases in the BTC / USD exchange rate, which soared by around 1,200% over the same period.

The OKEx deposit as mentioned above came in the meantime when bitcoin was showing signs of fatigue. The cryptocurrency hit a new milestone above $ 58,000 on Sunday, leaving the author of the tweet concerned about the prospect of an imminent sell-off.

Technical Market Outlook:

The BTC/USD pair has crashed almost 20% in 24h, from the all time high at $58, 258 to $48,195. Currently, the market is testing the lower channel boundary and if this level is violated, then the next target for bears is seen at the level of $45,710 and $43,714. The overbalance of price is obvious as the level of $51,775 had been violated as well. The bulls are trying to protect the level of $50,000 as the main technical support, but it looks like they are losing this battle.

Weekly Pivot Points:

WR3 - $75,571

WR2 - $67,184

WR1 - $63,246

Weekly Pivot - $54,169

WS1 - $50,671

WS2 - $42,010

WS3 - $37,979

Trading Recommendations:

The bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $60,000. Any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $41,125 is clearly broken.