Sideways Trading Session
The BTC/USD closed at $47084.0 after placing a high of $4810.0 and a low of $46036.0. BTC/USD rose to its highest since 17th May, above the $48,000 level on Saturday. However, it failed to hold on to gains and declined for the day. Alberto Fernandez, the President of Argentina, has indicated support for digital assets and said there was no reason to push back against the emerging asset class. While asked about his intentions of considering exploring a central bank digital currency or recognizing Bitcoin as legal tender, Fernando said that there was no reason to say no to this question as this move would provide an advantage of a nullified inflationary effect.
However, on the other hand, the head of the central bank of Argentina, Miguel Pesce, was not in favor of exploring digital assets and appeared to be threatening a crackdown on the industry. He said that digital assets were a threat to economic stability, and he also asked for tighter regulations for the sector. These comments from Pesce added weight to BTC/USD over the weekend.
On the other hand, the Switzerland-based financial institution, Leonteq AG, has announced that it will now allow its investors in Germany and Austria to operate with 18 cryptocurrencies. Leonteq is a significant fintech company headquartered in Zurich which provides structured financial products along with insurance products. The company is said to serve more than 50 markets and has about $140 billion in AUM.
The latest announcement of expanding its cryptocurrency services to Germany and Austria will be delivered through a partnership with the Frankfurt-based institution ICF BANK AG. This news added some strength to the cryptocurrency market and prevented the further loss in BTC/USD. Meanwhile, the CEO and Chairman of MicroStrategy, Michael Saylor, has said that Bitcoin was hope for Canada. Saylor has been in favor of cryptocurrencies and is famous for his holdings of bitcoins. The CEO of MicroStrategy has said that Canada alone has enough unused hydroelectric power to operate the whole Bitcoin Network.
According to Saylor, Canada has 400 TWh of hydroelectric capacity, whereas Bitcoin runs only 129 TWh. Saylor, the self-named crypto-guru, once advised everyone to turn their cash into bitcoin as it was a once-in-a-lifetime transformation. He has even called bitcoin the most powerful technology in the 21st century. These comments from Saylor capped a further loss in BTC/USD that was likely to be triggered by profit-taking as the prices reached above $48,000 over the weekend.
BTC/USD Intraday Technical Levels
Pivot Point: 46647.3
BTC/USD - Technical Outlook
The leading crypto pair BTC/USD is exhibiting a choppy session, maintaining a narrow trading range of 48,019 – 47,161 level. On the 4-hour chart, Bitcoin has formed a double top pattern at the 48,019 level and a bullish crossover at the 48,019 level exposes the BTC price towards the 48,750 and 49,766 levels. The support prevails at 47,161 and 46,600 levels.
The 50-period simple moving average supports Bitcoin's bullish trend, whereas the MACD is also holding in the buying zone. The breakout below the 47,160 level could determine further trends in the BTC/USD pair. On the 4-hour timeframe, the BTC/USD pair has formed an upward channel and an ascending triangle pattern. Both of these patterns demonstrate a bullish bias in Bitcoin. All the best!
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