50 EMA Crossover Drive Sellers
The BTC/USD was closed at $39,156.0 after placing a high of $40,441.0 and a low of $38,716.0. BTC/USD continued its bearish streak for the third consecutive session on Monday and settled below the $39,000 level. A U.S. asset management giant, GoldenTree Asset Management which has $45 billion in assets under management AUM, announced that it has purchases portions of Bitcoins and added them to its balance sheet.
The company is said to add bitcoin because it wanted to diversify from traditional debt investment strategies. The wealth management firm was looking for staff that understands crypto solutions and blockchain tech. This news added to the price of bitcoin during early trading hours on Friday.
Furthermore, the government of Germany passed the law that will enable German institutional funds to hold up to about 20% of their assets in terms of cryptocurrencies. The latest German law will go into effect from Aug 02, and this initiative could bring about $415 billion worth of investments via cryptocurrencies. This was another piece of news that added further strength to the prices of Bitcoin over the weekend. Meanwhile, Wealthfront has also announced that it would increase the cryptocurrency exposure to its clients by adding Grayscale Bitcoin Trust and Grayscale Ethereum Trust.
This service will not require the clients to use wallets or open an account in a cryptocurrency exchange. The company also warned that such investment could be risky and more volatile than most ETFs and would limit the initiative. This was another factor involved in the rising prices of BTC/USD. Moreover, there were also reports that the former SEC Chairman Jay Clayton was fighting for an approval of Bitcoin ETF.
While, on the other hand, the newly-appointed SEC Chairman, Gary Gensler, was continuously working towards establishing a regulatory framework for digital assets.
Currently serving on the One River Asset Management board, Clayton has recently submitted a registration statement for One River Carbon Neutral Bitcoin Trust. This fund is the latest attempt at getting the long-awaited Bitcoin ETF approval in the U.S. Clayton is actively involved in the application process and is considering the experience of the former SCE head, and people are suggesting that this fund has good odds at getting approval from SEC.
The declining prices of Bitcoin over the weekend could be attributed to profit-taking and the strength of the U.S. dollar. The DXY reached 92.20 level on Friday amid the renewed strength against the basket of six major currencies as the inflation was rising higher than the central bank's expectations. The chairman of the Federal Reserve, Jerome Powell, said that inflation might remain at higher levels for some time, but it would be transitory.
BTC/USD Intraday Technical Levels
Support Resistance
38434.4 40159.4
37712.7 41162.7
36709.4 41884.4
Pivot Point: 39437.7
BTC/USD - Technical Outlook
The BTC/USD pair continues trading with a bearish bias at the 38,275 level, gaining immediate support at the 38,250 level. Violation of this support level exposes the Bitcoin price towards the next support level of 36,345 level. A double bottom pattern gives this support level on the 4-hourly chart. The closing of candles below the 38,250 level will confirm the breakout and expose Bitcoin to further selling trends. Alternatively, closing above 38,350 keeps the Bitcoin bullish until 39,450 and 40,400 resistance levels. The MACD is also supporting a selling trend in Bitcoin on Tuesday. All the best!
JOIN LONGHORNFX TODAY
24/7 live support, lightning fast withdrawals, guaranteed safe and reliable trading platforms with a true ECN broker.