Categories
Technical Analysis

BTC/USD Analysis – April 13, 2021

BTC Extends Symmetrical Triangle

The BTC/USD was closed at 59900 after placing a high of 60701 and a low of 59747. After rising for four consecutive sessions, the BTC/USD prices declined at the starting day of the week despite breaking above the $60,000 resistance level.

The decline in Bitcoin prices might have come through the CEO’s warning of a top Bitcoin exchange. Jesse Powell said that governments worldwide might start to clamp down on the use of Bitcoin and other cryptocurrencies. It came in after several officials, including U.S. Treasury Secretary and European Central Bank President, have been issuing a warning about the use of Bitcoin for money laundering, terrorist financing, and other illegal activities.

The Central Bank of Sri Lanka issued a general warning about the investment in cryptocurrency as it has a high level of risk involved. The CBSL said that investing in digital assets like Bitcoin, Ethereum and Litecoin comes with an even higher risk. The means of obtaining cryptocurrencies include exchanges, mining, or via ICOs, and Sri Lanka does not allow any of these crypto-related activities in its nation. This news gave a negative impression on the crypto market, and hence, Bitcoin prices fall on Monday.

On the flip side, the number of Bitcoin ATMs across the globe were increasing day by day, and over the last six months, it has increased by 70%. The U.S. accounts for 84% of all the Bitcoin ATMs globally. America and Canada are the market leader in terms of operating Bitcoin ATMs. This news gave strength to the Bitcoin prices.

The Revolut Bank announced its most recent crypto play in the form of support for 11 new cryptocurrencies. The firm announced that 11 new tokens would be added to its exchange platform to satisfy its customers’ appetite for cryptocurrencies. The expanded support to more cryptocurrencies from Revolut Bank gave a push to Bitcoin prices.

According to the latest report, Bitcoin, compared to financial institutions, has reached four banks combined. The four banks including JP Morgan, Citigroup, Bank of America, and Wells Fargo. The market cap of Bitcoin has reached $1.121 trillion that is greater than the combined market cap of above mentioned four banks.

A digital asset investment management firm, Galaxy Digital has become the latest company for a Bitcoin exchange-traded fund with the U.S. Securities and Exchange Commission. On Monday, the firm stated its intentions to launch a Bitcoin ETF called “Galaxy Bitcoin ETF.” If approved, this will be traded on the NYSE Arca exchange.

BTC/USD Intraday Technical Levels
Support
Resistance
59531 60485
59162 61070
58577 61439
Pivot Point: 60116

BTC/USD – Technical Outlook

The BTC/USD is trading with a slight bullish bias at 60,629 level on the technical front. As discussed in the April 12 analysis, the BTC/USD pair continues to trade within a tight trading range of 61,000 – 59,250. The BTC/USD has closed a symmetrical triangle pattern that continues to keep the Bitcoin trading choppy. The violation of this pattern can extend bullish or a bearish movement in the BTC/USD pair, depending upon which side it breaks first. The technical indicators such as the MACD, Stochastics, and EMA support an upward trend; therefore, the violation of the 61,022 level can open additional room for bulls until 62,350 level. All the best!