BTC/USD Analysis - April 27, 2021

50% Fibonacci Retracement In Play!

The BTC/USD closed at $54020.5 after placing a high of $54320.9 and a low of $48815.9. Bitcoin prices reversed their course on Monday after dropping for five consecutive days. Last day, Bitcoin fell to its lowest since March 5 at $47098 level. Bitcoin reversed its direction and recovered most of its losses from the previous four sessions, and posted a massive recovery amid increased optimism surrounding the cryptocurrency market on the back of various positive news.

On Monday, a report issued at CoinDesk, JP Morgan Chase & Co. will offer an actively managed bitcoin fund to its clients later this year. This move was a significant change for a bank whose CEO once called bitcoin a dangerous fraud. This fund will be for clients in JP Morgan's private wealth division and could roll out this summer.

If such funds become available, JP Morgan would be joining a growing number of legacy financial firms that want to offer bitcoin exposure to its clients. In March, Goldman Sachs announced a similar move, while Morgan Stanley announced one earlier this month. Bitcoin prices that were already recovering from a sharp sell-off last week added to their gains on the back of this report.

Furthermore, the National Football League (NFL) tight end Sean Culkin stated that he would be converting his entire 2021 salary into bitcoin on Monday. Culkin plays for the Kansas City Chiefs, and this decision by him would make him the first player in NFL history to convert his entire annual salary to bitcoin. This news also supported the positive tone surrounding Bitcoin on Monday and added in its gains.

Meanwhile, the President and CEO of PayPal, Dan Schulman, has said that the demand for cryptocurrency assets has surpassed the company's expectations. In his latest interview with TIME magazine, Schulman forecasted a sharp decline in the use f cash and said that Bitcoin and other cryptocurrencies could take advantage of that.

PayPal allowed cryptocurrency payments in 2020, and the company has seen a significant surge in crypto-related transactions in the last few months. The company does its business in more than 200 countries and deals in more than 100 currencies. Last year, PayPal processed 15.4 billion payments, with $936 billion. Bitcoin gains were further increased after these comments from the CEO of PayPal.

BTC/USD Intraday Technical Levels

Support Resistance

51220 52839

48010.9 55954

47683.0 58307

Pivot Point: 53355.1

BTC/USD - Technical Outlook 

The BTC/USD trades sharply bullish at 53,955 level, covering most of its losses. The cryptocurrency has completed 38.2% Fibonacci retracement at 53,934 level. The BTC/USD pair has violated 51,234 resistance on the four-hourly timeframe, and now it's heading further north to complete 50% Fibonacci retracement at 55,950 level. The leading technical indicator RSI 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, the immediate histograms are becoming smaller and smaller, suggestings sellers are getting exhausted, and bulls are taking control. On the higher side, bitcoin may find resistance at 55,954 and 58,370 levels today. All the best!