Technical Analysis

BTC/USD Analysis – Aug 17, 2021

By LonghornFX Technical Analysis
Aug 17, 20213 min

Sideways Trading Session Breakout

The BTC/USD was closed at $45,940.0 after placing a high of $48,059.0 and a low of $45,689.0. BTC/USD dropped for a third consecutive session on Monday after a popular investor and famous actor known as Mr. Wonderful, from his performance on Shark Tank, Kevin O’Leary explained the reason behind less involvement of institutions in crypto yet.

O’Leary talked about essential considerations of the crypto industry, like portfolio diversification, institutional involvement, ESG concerns, and the most recent investment, WonderFi. He argued that institutions generally were not participating in cryptocurrency investment despite some of the big names like Tesla and MicroStrategy.

He said that these companies had put a small portion of their funds into crypto while big institutions were still skeptical as big investors were looking for compliance because none of them were scared of volatility; rather they wanted to play. He explained that he recently became a shareholder and ambassador for a leading cryptocurrency exchange, FTX, because the CEO of the exchange assured him that they would offer the compliance needed.

According to a new filing with the United States Securities and Exchange Commission, four wealth management companies have acquired shares of Grayscale’s Bitcoin Investment Trust, which offers further evidence of institutional adoption of digital assets. Many firms were exploring new and diverse ways to gain exposure to Bitcoin and other cryptocurrencies, which should have supported BTC/USD prices, but failed to do so, and the leading digital asset remained under pressure on Monday.

Furthermore, Wealthfront, a robo-advisor firm with about $25 billion in AUM, has announced that it will now provide options for crypto exposure to its more than 450,000 clients. Two crypto assets were added to the firm’s investment options, named the Grayscale Bitcoin Trust and the Grayscale Ethereum Trust. Investors can add up to 10% of their portfolio to cryptocurrencies. This allocation was put in place to help clients avoid creating overly risky portfolios.

Meanwhile, a reason behind the declining prices of Bitcoin could be a study conducted by Geminin crypto exchange in partnership with CoinMarketCap and Seedly, which stated that more than 2-3rd of investors from Singapore currently hold cryptocurrencies.

According to the study, the second-largest cryptocurrency, Ether, was more popular in Singapore than Bitcoin as four of five crypto investors in the country own ETH, followed by BTC, ADA, and then Binance Coin. This report weighed on leading cryptocurrency as Singaporean crypto investors were more inclined towards ETH than BTC and, hence, BTC/USD declined on Monday.

BTC/USD Intraday Technical Levels

Support Resistance

45066.4 47436.4

44192.7 48932.7

42696.4 49806.4

Pivot Point: 46562.7

BTC/USD - Technical Outlook

The leading crypto pair BTC/USD is exhibiting a selling bias, violating the narrow trading range of 48,019 – 47,161 level. On the 4-hour chart, Bitcoin is now gaining support at the 45,550 level, and a bearish crossover of this level could expose its price towards the 43,839 level. The BTC/USD has violated the upward channel that provided support at the 46,630 level and now the same level is working as resistance for Bitcoin.

The double bottom pattern on the 4-hour timeframe is supporting Bitcoin at the 45,550 level. However, the breakout below this level exposes the pair towards the next support level of 43,850 level. The 50 day SMA (simple moving average) is supporting the pair at the 45,800 level, and a bearish crossover below this level exposes the BTC to a selling trend. All the best!


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