Choppy Session in Play
The BTC/USD was closed at 56,476 after placing a high of 56,950 and a low of 54,398. After falling for four consecutive sessions, Bitcoin raised on Tuesday and broke its bearish streak. The bearish trend in Bitcoin finally broke on Tuesday, thanks to PayPal. Venmo, the peer-to-peer payment service owned by PayPal Holdings Inc., said on Tuesday, has started allowing its users to buy, hold, and sell cryptocurrencies on its app.
This latest jump on the Bitcoin craze by famous digital wallet Venmo with 60 million active users raised the odds that this step could inspire more mainstream adoption of the digital asset class. The company said that the users would be able to buy Bitcoin, Ethereum, Litecoin, and Bitcoin Cash for as little as $1 and public transactions on the app’s feed.
Venmo is one of the most accepted payment platforms in the US, particularly among younger customers who use it to pay friends and family. Last year, Venmo processed around $159 billion in payments. This positive news helped Bitcoin found its lost ground, and BTC/USD posted gains for the first time in five days over this news. Furthermore, the gains in Bitcoin were also associated with the latest statement made by the executive director of the Blockchain Association, Kristin Smith. He dismissed fears that the US Department of the Treasury was close to crackdown on Bitcoin and other cryptocurrencies.
Over the weekend, the rumors of the Treasury bringing money laundering charges against some financial institutions using cryptocurrencies began circulating on social media that took a toll on Bitcoin prices and over the whole crypto market. However, now these concerns were faded after Smith’s comments and helped Bitcoin find its demand back.
BTC/USD Intraday Technical Levels
Pivot Point; 55970.3
BTC/USD - Technical Outlook
On Wednesday, the BTC/USD pair continues to trade with a bearish bias at 55,642 level. The pair is consolidating in a broad trading range of 57,657 level to 53,367 level, and lack of trading volume keeps the pair’s movement limited. On the 4 hour timeframe, the 20 & 50 periods EMA are extending resistance at 55,750 and 60,019 levels. The RSI and MACD values suggest bearish bias among investors; therefore, the pair is looking for a bearish breakout. On the down side, the breakout of the 53,350 support level opens up further room for selling until the next support area of 50,015, whereas resistance stays at 57,657. All the best!
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