Bitcoin Gain Support at $47,720 Level
The BTC/USD reached a high of $48,857.0 and a bottom of $46,604.0 before closing at $47,714.0. After breaking through $50,000 on Monday, BTC/USD ran into resistance and profit-taking, causing the coin to drop on Tuesday. On Tuesday, the BTC/USD pair turned red after regulators in Yingijang County, Yunnan Province, China, instructed hydropower facilities to stop selling power to bitcoin mining operations. The Yingjiang County People's Government issued a notification stating that power stations have until Tuesday, August 24, to remove mining businesses from their supply grid.
Officials will forcefully remove the supply of cryptocurrency mining facilities under their jurisdiction if the facilities refuse to divest mining facilities from their grid's illicit supply. This news added to the downward pressure on BTC/USD, which was already on the decline due to profit-taking.
The Yingjiang County government's notification also compels the power plants to submit the delisting of mining facilities to China's National Development and Reform Commission. The government will monitor the illicit power supply to bitcoin miners in this manner, ensuring that enforcement operations are effective.
On the other side, Citigroup, the world's largest bank, was waiting for bitcoin futures to be approved for trading on the Chicago Mercantile Exchange. Client demand for bitcoin exposure has surged, and if allowed, Citibank will join Goldman Sachs as the second big bank that offers Bitcoin bitcoin futures.
In contrast, Europe was preparing to issue its first Bitcoin futures while the United States struggled to gain regulatory approval. ETC Group, a producer of digital asset-backed securities, has announced that its Bitcoin ETN futures will begin trading on September 13. This announcement came as Citigroup, the world's largest bank, was waiting for confirmation of its Bitcoin futures, and it weighed on market sentiment, causing BTC/USD to lose even more ground.
Meanwhile, El Salvador's President, Nayib Bukele, has attempted to reassure citizens that adopting the Bitcoin Law will have a good impact on their lives. The law is set to go into effect on September 7, and officials worldwide, including opposition leaders party, are stressing the concerns that could arise as a result of its implementation. Bukele was optimistic that bitcoin would greatly relieve the country's economic troubles.
Bukele also announced the installation of 200 automated teller machines and 50 branches, letting locals change bitcoin into US dollars beginning September 7, when the Bitcoin Law goes into effect. On Tuesday, BTC/USD fell even further as a result of this news.
BTC/USD Intraday Technical Levels
Pivot Point: 49700.1
BTC/USD - Technical Outlook
The leading cryptocurrency pair, BTC/USD, is trading at the 48,420 level, having violated the pivot point support level of 48,603 level. On the downside, the pair is facing another support at the 47,725 level. For now, Bitcoin has formed a sideways trading range of 48,600 – 47,722 levels and the breakout of this range will determine further trends in the market.
On the downside, a breakout of the 47,722 support level exposes the BTC/USD pair towards the 47,400 and 46,520 support zones. While further breakout of 46,520 levels exposes the BTC towards 46,319 support level. In contrast, the breakout of the 48,600 resistance level exposes the Bitcoin towards 49,484 and 50500 levels. The RSI and 50 EMA are supporting a selling bias. Therefore, the focus should remain on 48,600 as the selling bias remains dominant below this level. All the best!
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