BTC/USD Analysis – December 17, 2021

Bitcoin Price Prediction

BTC/USD was closed at $47,675.0 after reaching a high of $49.462.10 and a low of $47.561. On Thursday, BTC/USD reversed its course and dropped amid negative developments surrounding the Bitcoin ecosystem.

The government of Thailand is preparing a new regulatory framework for cryptocurrencies like Bitcoin to minimize risks and improve investor protection. In January, the central bank of Thailand will define "red lines" for the crypto industry.

The governor of the Bank of Thailand (BoT), Sethaput Suthiwartnarueput, said that the bank wants to strike the right balance between allowing financial innovation and managing risks. He said that the new rules would safeguard consumers if the risks were underappreciated. The restrictions will be specified in a collaboration between the Bank of Thailand, the finance ministry, and the Thai Securities and Exchange Commission. Unfortunately, this news of regulations like cryptocurrencies cannot become a means of payment, and more negative pressure on the whole crypto market and BTC/USD followed the trend and declined on Thursday.

On the other hand, the International Monetary Fund's (IMF) Chief Economist, Gita Gopinath, stated that developing economies should refrain from banning cryptocurrency and that regulating the industry is more important. She said that global policy on digital assets was an urgent need to address the challenges the technology poses to emerging markets. These comments from Gopinath had a subdued effect on the whole market, and BTC/USD remained on the downside.

Furthermore, the trading app Robinhood has recently announced that its users will gift friends and family crypto over the holiday season. Starting on Dec. 22, all Robinhood users, except those who belong to Nevada and Hawaii, will be able to spend as little as $1 in BTC or six other cryptocurrencies with a personalized digital card starting on Dec. 22. The timeline for accepting the gift has been set as 14-days, at which point the user will not be charged. This news positively impacted cryptocurrencies, but it also capped further losses in the BTC/USD pair.

BTC/USD Intraday Technical Levels

Support Resistance

47162.0 50080.0

45423.0 51259.0

44244.0 52998.0

Pivot Point: 48341.0

BTC/USD - Technical Outlook

Bitcoin has begun a recovery wave above the $48,500 resistance level. However, BTC could not break beyond the $49,500 barrier level and attempted twice to clear $49,500, but there was no decisive break. As a result, a bearish reaction occurred below the $48,500 mark. The price fell below the 50 percent Fib retracement level of the upward run from the swing low of $46,662 to the high of $49,512. It is currently trading below the $48,500 mark and the 100 hourly simple moving average. The first big support is currently emerging near the $47,500 mark and the trend line. If the price breaks below the trend line, it may expose BTC towards the $46,500 mark. The next significant support is near $45,800. All the best!