Technical Analysis

BTC/USD Analysis – Aug 23, 2021

By LonghornFX Technical Analysis
Aug 23, 20214 min

Bitcoin Breaks Above 50K Level

The BTC/USD reached a high of $48,487.0 as well as a low of $48,121.0 before closing at $48,264.0. Due to recent good developments in the Bitcoin ecosystem, BTC/USD stayed positive throughout the day and gained during the weekend.

According to recent reports, Missouri Mayor Jayson Stewart indicated that he would like to see Bitcoin distributed to every single household within his city. He mentioned that he was considering donating up to $1000 in bitcoin to some of the valley's residents. He planned to set aside $1.4 million in bitcoin and distribute it to the city's 1500 citizens.

He discussed the funding sources and stated that the majority of the funds would come from generous donors. He would not rule out the possibility of using funds from the government's pandemic relief fund to undertake this program. The exact total has yet to be determined, but the mayor stated that each citizen might receive roughly 1000 USD, equal to around $1.5 million or 30 BTC. This news boosted BTC/value USD and drove it higher over the weekend.

Another issue emerged in the market that exemplified how cryptocurrencies were posing legal challenges to governments worldwide as they attempted to comprehend cryptos' volatile and technical aspects. When the Swedish government was forced to pay a drug dealer $1.5 million in bitcoin, it found itself in a unique situation. A Swedish court found a man guilty of selling drugs online while illegally earning 36 BTC from those sales two years ago. His prosecutor utilized the currency value of the coin at the time to make his argument.

The court then confiscated the illegally obtained Bitcoin for $100,000, which was a blunder, as the court eventually discovered. Because of this blunder, the court was forced to pay a drug dealer $1.5 million when he was released after two years because the value of bitcoin had increased during his time in prison.

The court's original $100,000 payment was met by selling merely three bitcoins. The remaining 33 BTC, worth $1.5 million, are still in the criminal's wallet, which the government must now restore. This problem may have been averted if the state had sold out all 36 BTC at the time of detention. Another option would have been for the prosecutor to record funds in cryptocurrency rather than dollars.

Meanwhile, Gary Gensler, the Chairman of the US Securities and Exchange Commission, has pledged a crypto crackdown, claiming that the prominence of bitcoin and other cryptocurrencies has attracted negative actors such as hackers who demand Bitcoin ransomware payments. According to Gensler, a lack of openness and rules encourages hackers, which has increased the number of cyber thefts and heists. As the necessity and desire for cryptocurrency regulation has grown, authorities have been given permission to establish new rules.

BTC/USD Intraday Technical Levels

Support Resistance

48427.6 49793.6

47591.3 50323.3

47061.6 51159.6

Pivot Point: 48957.3

BTC/USD - Technical Outlook

The leading cryptocurrency pair, BTC/USD, is trading sharply bullish above the 50,000 level. On the hour timeframe, Bitcoin has violated the resistance level of 49,650, and a bullish crossover of this level is making its way clear until 50,700 resistance. However, the pair is already in the overbought zone, and investors can experience profit-taking before further bullish trend continuation.

The BTC/USD has closed a tweezer's top pattern on the hourly chart that typically initiates profit-taking. Therefore, a slight bearish correction can be seen in Bitcoin. The Bitcoin's immediate support stays at the 49,650 level, and a breakout below this exposes the pair towards the 49,023 level. In contrast, the pivot point level holds at around 47,989 level. Bullish bias dominated on Monday. All the best!


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