Technical Analysis of BTC/USD for August 2, 2021

Crypto Industry News:

Beginning August 2, 2021, German institutional funds will be able to hold up to 20% of their cryptocurrency assets, possibly paving the way for wider acceptance of Bitcoin (BTC) and other digital assets by national pension funds. This means that the cryptocurrency market can be influenced by investments worth more than 415 billion dollars.

The new law changes the permanent investment rules for Spezialfonds, also known as special funds, which are only available to institutional investors such as pension funds and insurance companies. Spezialfonds currently manage assets worth around $ 2.1 trillion (€ 1.8 trillion).

The new law, which was adopted in early July, represents an important evolution in the way German lawmakers manage digital assets. The German Federal Financial Supervisory Authority, better known as BaFin, continues to call for caution when it comes to investing in digital assets. At the same time, the financial regulator encourages blockchain-based innovations.

Germany initiated a comprehensive blockchain strategy in 2019 promoting 44 adoptions to be introduced by the end of 2021. The new approach to blockchain and cryptocurrencies also introduced measures that would make it easier for investors to access digital investment.

Technical Market Outlook:

The BTC/USD pair rally above the $40,000 had been terminated at the level of $42,404 so far. The market pulled-back towards the lower ascending channel line and tested the technical support at $39,413. There is a clear negative divergence between the price and momentum oscillator at the H4 time frame chart, so the pull-back might deepen towards the next technical support seen at the level of $38,261. Please keep an eye on the market reaction around the supply zone, because one violated will act as the technical support zone on the bulls way towards the next target seen at $46,371.

Weekly Pivot Points:

WR3 - $53,201

WR2 - $47,804

WR1 - $45,105

Weekly Pivot - $39,794

WS1 - $37,184

WS2 - $31,598

WS3 - $29,174

Trading Outlook:

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 $70,000. The next mid-term target is seen at the level of $47,000. This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).

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The material has been provided by InstaForex Company - www.instaforex.com

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