BTC/USD Analysis - April 30, 2021

Choppy Session in Play!

The BTC/USD was closed at 53,566 after placing a high of 54,860 and a low of 52,631. Bitcoin extended its losses on Thursday and fell amid several negative developments surrounding the crypto market. JP Morgan, one of the leading banks on Wall Street, issued a notice to investors that notified them that Ethereum would perform better than Bitcoin in terms of liquidity and turnover. JP Morgan supported claims that Ethereum was performing better than Bitcoin and expected that its performance would go even better in the future. This report by a leading bank exerted a negative impression on bitcoin and added losses in its value.

A Russian-Sweden citizen, Roman Sterling, was arrested by the USA Federal Service on suspicion of laundering nearly $336 million in bitcoin for the last ten years. The criminal is set to appear before the court and faces three charges of money laundering, money laundering without authorization, and unlicensed money transmission. Meanwhile, the author of "Black Swan" Nassim Taleb lashed out at Bitcoin and said it was not a hedge against inflation. The influx did not convince Taleb of institutional investors or the growing narrative that Bitcoin was a possible hedge against inflation. He doubled down on his criticism of Bitcoin and concluded that there was no reasonable argument in favor of Bitcoin as an inflationary hedge.

He also criticized the recent bitcoin rally and called it an open Ponzi scheme; he argued that there was no fundamental reason behind it as it should be linked to something economical. He repeated that there was no link between inflation and bitcoin. Furthermore, the U.S. government and private sector players were pushing for extensive bitcoin regulations to limit the use of cryptos as payment for ransomware attacks. According to some sources, a panel of experts including members from the U.S. Secret Service, FBI, technology, and security companies was expected to recommend new measures that will make digital assets less anonymous.

Moreover, the U.S. SEC has requested more time to review the application by VanEck for a Bitcoin ETF. If approved, it will become the first Bitcoin ETF in the country. SEC has demanded more time before deciding whether to approve or not request the launch of VanEck's Bitcoin ETF. ETF targets investors who do not want to invest directly into cryptocurrency rather, and they buy stocks of companies operating in crypto to mitigate risk. Hence, Bitcoin ETF will give investors direct exposure to crypto assets.

BTC/USD Intraday Technical Levels

Support Resistance

52511.4 54740.4

51456.7 55914.7

50282.4 56969.4

Pivot Point: 53685.7

BTC/USD - Technical Outlook 

Technically, the BTC/USD pair has mostly consolidated in a narrow trading ranges amid lack of trading volume and violatility. The Bitcoin is trading at 54,960 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 trading range. 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!