BTC/USD Analysis - April 28, 2021

Tweezers Top Pattern!

The BTC/USD was closed at $55044 after placing a high of $55215 and a low of $53660. Bitcoin prices extended their gains on Tuesday and reached above $55,000 level amid increased adoption of Bitcoin among banks in the United States. The U.S. Bancorp, the fifth-largest bank in the country, has announced introducing a cryptocurrency custody product and an unnamed sub-custodian. The U.S. bank would also serve as the administrator for a potential bitcoin ETF to be offered by NYDIG, pending the regulatory approval of that offering.

The bank said that it was motivated by the growing calls from its customers for exposure to the crypto industry. The bank also said that institutional investors such as pension funds and insurance companies were looking forward to investing in cryptocurrencies. This helped bitcoin to extend its gains on Tuesday. Furthermore, a Las-Vegas-based payment app banq started the facility to invest in Bitcoin and Ethereum in various accounts. Users can generate as many sub-accounts as they want for a company or personal usage and further buy, hold, or sell crypto out of any or all of them.

Meanwhile, Mastercard collaborated with the digital asset exchange Geminin to introduce an innovative crypto rewards credit card. Dubbed Gemini Credit Card has already over 100,000 people on its waitlist, but it would start in summer. In simple words, Mastercard and Gemini introduced a credit card offering up to 3% cashback as rewards in Bitcoin. This news added further gains in BTC/USD on Tuesday.

Late Monday, news started circulating in the market that Elon Musk has sold some of his Bitcoin; however, the billionaire entrepreneur used Twitter to assure the crypto community that he has not sold any of his Bitcoin stashes, despite Tesla realizing profits from its recent Bitcoin buys. Tesla reported record profits due to sales of emissions credits and speculative gains on Bitcoin. This news also supported the rising prices of Bitcoin. On the flip side, the Nigerian Economic and Financial Crimes Commission (EFCC) has issued a warning against investing in Bitcoin due to its unregulated nature and the high potential for fraud. This news kept the gains in Bitcoin limited on Tuesday.

BTC/USD Intraday Technical Levels

Support Resistance

54064.4 55619.4

53084.7 56194.7

52509.4 57174.4

Pivot Point: 54639.7

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BTC/USD - Technical Outlook**

The BTC/USD is trading at 54,560 level, having completed 50% Fibonacci retracement at 56,000 level. On the 4 hour timeframe, the leading crypto pair has closed a tweezer's top pattern that's suggesting odds of bearish correction in the Bitcoin. The leading indicators have started shifting in the selling zone on the hourly timeframe, such as RSI is crossing below 50 and BTC price is falling below 20 EMA. The BTC/USD pair may find support at 53,935 and 52,580 levels. Below these levels, the BTC next support holds around 51,800. Conversely, the violation of 55,850 resistance exposes Bitcoin towards resistance areas of 57,300 and 58650. All the best!