Technical Analysis

BTC/USD Analysis – Aug 06, 2021

By LonghornFX Technical Analysis
Aug 6, 20213 min

50 EMA Bullish Crossover

The BTC/USD was closed at $40,887.0 after placing a high of $41,352.0 and a low of $37,361.0. After declining for four straight sessions, BTC/USD surged for the second day in a row on Thursday, reached above $41,000 level, and closed the session above $40,000 level amid recent positive developments in the cryptocurrency market.

Christopher Giancarlo, a former commissioner with the Commodity Futures Trading Commission (CFTC) has argued that crypto regulation does not come under the jurisdiction of the SEC. These comments came in after the U.S. Securities and Exchange Commission expanded the scope of oversight of the cryptocurrency industry.

The former CFTC Chairperson has argued that the CFTC was the only regulatory agency in the United States that has experience regulating markets for Bitcoin and other cryptocurrencies. CFTC commissioner Brian Quintenz also declared on Twitter that cryptocurrencies like Bitcoin should be regulated by the CFTC rather than the SEC.

Meanwhile, on Thursday, a report suggested that the financial advisors at JPMorgan Chase were allowed to start placing private bank clients into a new bitcoin fund that was the creator with the help of crypto firm NYDIG. The news had a significant impact on BTC/USD prices. The banking giant had previously been against the digital asset market, but its transformation to provide bitcoin exposure to its wealthy clients in high demand added to the market sentiment.

After this move, JPMorgan became the first U.S. big bank to give retail clients bitcoin exposure. It means that, unlike other big banks, JPMorgan will not limit the access of this fund to only ultra-wealthy clients. This news supported the prices of BTC/USD and pushed higher the whole market sentiment on Thursday.

A German fashion company Philipp Plein International AG has announced that its customers will have a chance to buy products in digital assets instead of fiat money. The company will integrate about 15 cryptocurrencies in this service, including the top cryptos like Bitcoin and Ethereum. The clients of the fashion group will now be able to pay for clothes, shoes, and other products in BTC, ETH, and dozen other cryptocurrencies. This news also added strength to the already rising prices of BTC/USD.

Furthermore, a computer-driven fund manager based in Paris, Melanion Capital, has reportedly acquired approval to launch an exchange-traded fund that can track Bitcoin-related stocks for investors across the European Union. Additionally, the fund will not be considered as a bitcoin ETF as it will not invest or hold bitcoin directly. This news added further strength to the BTC/USD and pushed its prices above the $41,000 level on Thursday.

BTC/USD Intraday Technical Levels

Support Resistance

38381.4 42372.4

35875.7 43857.7

34390.4 46363.4

Pivot Point: 39866.7

BTC/USD - Technical Outlook

On Friday, the BTC/USD pair continues trading with a bullish bias at the 40,750 level. It’s gaining immediate support at the 39,650 level. Violation of this support level exposes the Bitcoin price towards the next support level of 37,495 level. A double bottom pattern gives this support level on the 4-hourly chart.

Regarding resistance, it’s holding at 41,200 level, and a bullish breakout of this level can expose Bitcoin price towards the next resistance level of 42,850. The 50 periods moving average is also pushing Bitcoin higher, as it extends support at 39,650 level. The closing of bullish engulfing pattern on the 4-hour timeframe is suggesting bullish bias among investors. Therefore, the bullish trend dominates above 39,650 levels today. The MACD is also supporting a bullish trend in Bitcoin. All the best!


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