BTC/USD Analysis – December 29, 2021

Bitcoin Price Prediction 

The BTC/USD pair closed at $47,554.0 after hitting a high of $50,710.0 and a low of $47,339.0. On Tuesday, BTC/USD fell for the second consecutive session on Tuesday, reaching its lowest level since December 21st. The latest decline in Bitcoin prices could be attributed to the regulation of bitcoin in Turkey. The Turkish currency, the Lira, is suffering its worst devaluation, and the country's laws have decided to keep the crypto industry's growth in check.

Savings guarantees: the Turkish state announced that the Turkish state would offer savers' guarantees. 

Furthermore, the Turkish government also fined Binance, the Japan-based crypto exchange giant with offices in the United States and several other countries worldwide. The Turkish government fined Binance 8 million lira, approximately $750,000, and said that it allegedly violated the regulations of the European country.

According to the Turkish newspaper NTV, the government of President Recep Tayyip Erdogan has already completed a law to regulate Bitcoin and other cryptocurrencies.

The President has said that he will send the law to Parliament for approval without delay. The Turkish Lira has lost around 85% of its value over the last decade, and now Turkey is seeking to re-float its currency. Turks have started using cryptocurrencies to hedge inflation to protect themselves from the financial crisis. This has prompted Erdogan to declare war on Bitcoin. The latest regulation on bitcoin from Erdogan added negative pressure on BTC/USD on Tuesday.

Meanwhile, the latest order issued by Iranian authorities to local crypto miners to temporarily suspend their activities during the winter months as there was a shortage of electricity also added to the declining prices of Bitcoin. This year, Iranian authorities took measures of this kind for the second time; they first did so in May and September. 

The Iranian government placed a temporary ban on bitcoin and crypto mining at the end of May as they were blamed for electricity blackouts. Energy consumption rose to its maximum level once again in the winter season, and the local Ministry of Energy called on miners to stop their activities temporarily. This news added further downside pressure on the BTC/USD on Tuesday and added to the losses of the leading cryptocurrency.

BTC/USD Intraday Technical Levels

Support Resistance

46358.6 49729.6

45163.3 51905.3

42987.6 53100.6

Pivot Point: 48534.3

BTC/USD - Technical Outlook

Bitcoin's price has failed to regain strength and has begun a new slide below the $50,000 support level. BTC fell below the $49,200 and $49,000 support levels, entering a bearish zone. Furthermore, on the hourly chart of the BTC/USD pair, there was a breach below a bearish continuation pattern with support near $49,200. The pair even came close to the $47,200 mark, trading below the $48,500 support zone.

If bitcoin does not return over $49,200, it may continue to fall. An immediate support level is around $47,500. The first significant support is around $47,200. If the price falls below $47,200, it may move towards the $46,500 support. Any further losses might push the price down to the $45,500 support level. All the best!