Ascending Triangle Pattern In-Play
The BTC/USD was closed at $44,423.0 after placing a high of $46,185.0 and a low of $43,789.0. BTC/USD dropped on Thursday for the third consecutive session amid the recent downward trend triggered after touching the three-month highest level.
The declining prices of BTC/USD could be attributed to the recent announcement made by the President of the Central Bank of Argentina. Miguel Pesce hinted at some regulation coming for the transactions of bitcoin soon. He added that they needed to avoid linking bitcoin with the traditional exchange market. He said they were going to the intersection of bitcoin with the payment system and the exchange market.
He said that Bitcoin could not fall into the category of a financial asset as an asset did not back it, and it also does not guarantee a stable yield. On the other hand, he also ascertained that the scarcity of bitcoin helps move its prices upward, giving an impression that it was a financial asset. He continued that the Central Bank was not affected because bitcoin can be used for transactions.
Talking about cryptocurrency regulations, Jim Cramer, an American television host, believed that cryptocurrencies need more regulations as the market could collapse without them. He further praised Ethereum as the best performing digital asset and spared bitcoin, which added extra pressure on BTC/USD.
On the flip side, the global investment manager VanEck has filed for the second time with the SEC for a Bitcoin strategy future ETF. The firm with over $60 billion in assets under management had previously filed for the first to file for a bitcoin ETF back in 2017, which was denied by the SEC. The proposed Bitcoin Strategy ETF will not give direct exposure to Bitcoin, but rather, it will provide exposure to Bitcoin futures and other investment vehicles.
However, he mentioned that the risks that these instruments could be used for scams, and if the money coming from cryptocurrencies mixes with the traditional exchange market, it would not be fair for the economy. The central bank was working to find effective ways of warning investors about the dangers of putting their savings behind cryptocurrencies like Bitcoin. These comments from Pesce added weight on already declining BTC/USD.
BTC/USD Intraday Technical Levels
Pivot Point: 44799.0
BTC/USD - Technical Outlook
The leading crypto pair BTC/USD is exhibiting a bullish bias at 45,694, having bounced off over 43,700 support levels. On the 4-hour chart, Bitcoin has formed an ascending triangle pattern supporting the pair at 43,650 level, along with a resistance level of 46,680 level. The 50 periods simple moving average supports Bitcoin's bullish trend, whereas the MACD is also holding in the buying zone. Alongside, Bitcoin has closed a series of bullish candles that are keeping an upward trend in Bitcoin. On Friday, the breakout of the 46,650 resistance level will expose the Bitcoin pair towards the 48,395 resistance level. Thus the bullish bias seems to dominate the market. All the best!
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