Bitcoin Price Prediction
The BTC/USD pair closed at $46,777.0 after hitting a high of $50,222.70 and a low of $45,790.0. The BTC/USD pair reversed course on Monday and turned red for the day, mainly because of the latest comments from Elon Musk. Tesla CEO Elon Musk, who has been named Time Magazine's Person of the Year, has said that BTC was suitable as a store of value, but the meme-cryptocurrency dogecoin was more suitable for transactions. He added that even though it was created as a silly joke, the meme-coin was better suited for transactions.
According to the CEO of Time, Edward Felsenthal, for nearly a century, Time has named a Person of the Year, the individual or group who most shaped the previous 12 months for better or for worse. Person of the Year is a measure of influence, and few people have had more influence on life on Earth, and potentially on life beyond Earth, than Musk.
Elon Musk said that he has a better understanding of the money system as he played a significant role in creating Paypal and suggested that bitcoin was unsuitable for payments. He further said that the transaction volume of bitcoin was low, and the cost per transaction was high. He pointed out that, fundamentally, BTC was not a good substitute for transactional currency. Musk's comments exacerbated the negative perception of the leading cryptocurrency, and BTC/USD fell on Monday.
Meanwhile, the digital asset bitcoin also faced negative pressure after the Twitter account of Indian PM Narendra Modi was compromised and taken over by hackers to promote a fake Bitcoin giveaway. Using Modi's account, the perpetrator tweeted that the country has adopted Bitcoin as a legal tender. The account has over 72.4 million followers, and many people started sharing screenshots of the tweet.
According to the fake tweet posted by the hacker, India has officially accepted Bitcoin as legal tender, and the government has bought 500 BTC and aims to distribute the coins to all residents in the country. Indian government officials soon removed this tweet as the account was secured.
The Indian government is considering regulating digital assets, while a complete ban on the new asset has been debated. Hackers' news of fake bitcoin giveaways added a negative impression on the cryptocurrency and dragged BTC/USD to the downside.
Furthermore, the strength of the US dollar also added selling pressure on BTC/USD. The DXY was strong across the board as it moved to a 96.44 level ahead of the release of the monetary policy meeting from the Fed.
BTC/USD Intraday Technical Levels
Pivot Point: 47596.6
BTC/USD - Technical Outlook
Bitcoin's price has failed to remain just above the $50,000 support level. As a result, BTC saw a significant negative reaction and fell underneath the $50,000 pivot mark. A bottom near $45,759 was formed, and the price is gradually correcting losses. Bitcoin is currently trading near the 23.6 percent Fib retracement level of the decline from the swing high of $50,788 to the low of $45,759 in price. A primary barrier is near the $47,400 level on the higher side.
If bitcoin fails to break through the $48,250 resistance mark, it may continue to drop. There is immediate support near the $46,500 level on the lower side. The first significant support is already emerging near $46,000. If the price falls below the $46,000 support, it may move towards the $45,500. Any additional dip could push the price down to the $45,000 support level in the short term.
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