Technical Analysis

BTC/USD Analysis – April 12, 2021

Symmetrical Triangle in Play!

The BTC/USD was closed at 59,846 after placing a high of 60,486 and a low of 59,411. BTC/USD raised during the weekend and reached above the $60,000 level after weeks of trying to surpass this level. Bitcoin hit its all-time high (ATH) in March at $61,800, and after that, it has faced much pressure and attempted many times to cross the key level of $60,000 but failed. However, this weekend, Bitcoin advanced above this level and broke its resistance, suggesting a new ATH will be hit soon.

Earlier this week, the Bitcoin investment provider NYDIG earned an additional $100 million in growth capital. This came in after the firm invested $200 million cash injections back in early March. The rapidly growing demand for cryptocurrencies by institutional investors has led the NYDIG assets in management to reach near $6 billion. On the weekend, a Ukrainian public office made a declaration in which it stated that it allegedly owns about $2.66B amount in Bitcoin. However, Bitcoin was not the only currency held by Ukrainian state employees. Still, ETH, LTC, ADA, XLM, and many more currencies were also mentioned in the report that the officials were holding. This depicted the rising trend of cryptocurrency and pushed Bitcoin prices higher.

On Thursday, the Hong Kong tech company Meitu declared that the total value of its cryptocurrency holdings had reached near $100 million after its latest purchase of $10 million worth of Bitcoin. The rising investments in Bitcoin also added to the upward trend of its prices. The primary reason behind the increasing prices of Bitcoin could be the increased market capital of the entire cryptocurrency market. The cryptocurrency market’s whole capitalization that includes about 9190 crypto-assets, reached over $2 trillion on Saturday and pushed Bitcoin prices above $61,000 level after four weeks. Meanwhile, one of the largest Canadian brokers, Matrix Mortgage Global, has announced that it will enable its clients to spend for goods and services with some of the most popular crypto assets, including Bitcoin, Ethereum, Ripple, Bitcoin Cash, and more. This will be done with the partnership of the US-based crypto service provider BitPay.

At 17:56 GMT, the Core PPI for March advanced to 0.7% against the estimated 0.2% and supported the US dollar that capped gains in BTC/USD. In March, the PPI also increased to 1.0% against the forecasted 0.5%, kept the US dollar, and limited the rising prices of BTC/USD. At 19:00 GMT, the Final Wholesale Inventories raised to 0.6% in March against the expected 0.5% and weighed on the US dollar that added further gains in BTC/USD.

On the flip side, Bitcoin faced some pressure after a board member of the European Central Bank, Isabel Schnabel, attacked Bitcoin and claimed that the crypto asset did not fulfill the money’s properties. She also declared that Bitcoin was a speculative asset without any recognizable fundamental value and was subject to massive price swings. She finally added that the trust in cryptocurrencies might rapidly evaporate, disrupting the financial markets in the future. Bitcoin prices also failed to break their previous all-time high level due to British Bank HSBC’s advanced strictness over cryptocurrency policy. The bank now prohibits customers from buying the stock of public companies that hold bitcoin. According to this new rule, all companies with Bitcoin holdings in treasuries will be under chopping block at HSBC.

BTC/USD Intraday Technical Levels
Support Resistance
58297.2 61167.2
56770.6 62510.6
55427.2 64037.2
Pivot Point: 59640.6

BTC/USD – Technical Outlook

The BTC/USD is trading with a neutral bias at the 60,208 level, maintaining a narrow trading range of 61,000 – 59,250. On the 2-hour chart, we can see the BTC/USD has formed a symmetrical triangle pattern, and Bitcoin consolidates within this triangle pattern for now. The violation of this pattern can extend buying trend in Bitcoin until the 62,335 level. Conversely, the bearish breakout of 59,259 level can extend the selling trend until 57,850 level.