BTC/USD Analysis - April 29, 2021

Choppy Session in Play!

The BTC/USD was closed at $54860.0 after placing a high of $55575.0 and a low of $54090 after making an impressive recovery in the previous two sessions; Bitcoin reached above $55,000 level on Wednesday but faced pressure and started retracement. During the first half of the trading session on Wednesday, Bitcoin prices improved and reached $55,000 in positive news like the Japanese gaming giant. Nexon announced the purchase of 1717 Bitcoin worth an estimated $100 million, an average price of $58.226. According to the announcement, Nexon stated that the Bitcoin investment represents less than 2% of its total cash and cash equivalents on hand.

Another positive report in favor of Bitcoin that helped BTC/USD to reach the $55,000 level was the announcement made by the chairman of Landry's hospitality group, the operator of restaurant chains. Tilman Fertitta said that most of his restaurants would be accepting bitcoin as payment very soon. According to a federal court filing, U.S. officials arrested Roman Sterling, the alleged principal operator of cryptocurrency money laundering website Bitcoin Fog. This news also added strength to Bitcoin prices.

However, the gains in Bitcoin could not live for long as Goldman Sachs was questioning whether bitcoin can be a long-term store of value and digital gold. The firm's analysts cited various issues with the cryptocurrency, such as environmental problems, lack of real use, and competition from other cryptocurrencies. These factors were blocking bitcoin from becoming digital gold and caused a negative impression on Bitcoin prices that dragged BTC/USD lower on Wednesday.

BTC/USD Intraday Technical Levels

Support Resistance

54064.4 55619.4

53084.7 56194.7

52509.4 57174.4

Pivot Point: 54639.7

BTC/USD - Technical Outlook

The technical side of Bitcoin hasn't changed a lot as it's trading at 53,960 level, having completed 50% Fibonacci retracement at 56,000 level. On the 4 hour timeframe, the leading crypto pair is consolidating in a narrow trading range of 56,450 – 53,350. 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 53,335 and 50,549 levels. Below these levels, the BTC next support holds around 47,736. Conversely, the violation of 55,850 resistance exposes Bitcoin towards resistance areas of 57,300 and 58650. All the best!