BTC/USD Analysis - April 26, 2021

Deep Dive in Bitcoin

During the Asian session, the BTC/USD made a solid comeback to trade at 5,2346 level. The BTC/USD dropped for the 9th session in the last ten days, and Bitcoin extended its bearish streak for the 5th consecutive session on Sunday. During Friday’s trading session, Bitcoin prices dropped to their lowest since March 6, near $47,000.

The world’s largest cryptocurrency by market cap, Bitcoin, was already under pressure from last week. On Friday, it faced fresh pressure after Ripple’s co-founder Chris Larsen, gave his opinion over Bitcoin. Larsen unequivocally stated that Bitcoin and other crypto assets needed to abandon the proof-of-work consensus mechanism due to its effects on the environment.

The executive claimed that there were tons of mechanisms better and more energy-efficient than PoW like Proof-of-Stake. He added that PoS has been more efficient and consumes only a tiny fraction of energy. Bitcoin prices faced further pressure after these comments from Larsen and extended their losses to reach below the $50,000 level. Furthermore, the recent decline on Friday in the cryptocurrency market could also be attributed to the latest data from Bybt. The date suggested over $4 billion worth of positions liquidated in the cryptocurrency market on April 23 in 24 hours. As per data, billions worth of long-position were liquidated in the past few days and left many short positions open in the market.

The release of U.S. President Biden’s plans to raise taxes on wealthy individuals also added further pressure on Bitcoin prices. The fears of higher capital gains taxes for wealthy Americans caused further losses in Bitcoin prices as it would hike the tax rate to about 43.4%.

On the flip side, the government of the U.S. state of Louisiana released a resolution in which it noted some of Bitcoin’s accomplishments. The Louisiana House of Representatives released a resolution to commend Bitcoin for its success in becoming the first decentralized trillion-dollar asset and encouraging the state and local governments to examine measures that could help them benefit from the extended usage of this new technology.

BTC/USD Intraday Technical Levels

Support Resistance

49446.4 51013.4

48725.7 51859.7

47879.4 52580.4

Pivot Point: 50,292.7

BTC/USD - Technical Outlook 

On Monday, the BTC/USD trades sharply bullish at 52,475 level, covering most of its losses. The oversold cryptocurrency has completed 23.6% Fibonacci retracement at 51,234 level. The BTC/USD pair has violated 51,234 resistance on the four-hourly timeframe, and now it’s heading further north to complete 38.2% Fibonacci retracement at 53,934 level. The leading technical indicator RSI (relative strength index) exhibits a bullish crossover as its value is crossing over 50, suggesting a strong bullish reversal in Bitcoin. Whereas the MACD is still holding the sell zone, however, the immediate histograms are becoming smaller and smaller, suggesting sellers are getting exhausted, and bulls are taking control. On the higher side, bitcoin may find resistance at 53,934 and 55,890 levels today. All the best!