Bitcoin Price Prediction
The BTC/USD closed at $40,740.0 after reaching a high of $43,540.60 and a low of $40,572.0. BTC/USD has continued to fall and has reached its 10-day low. The leading cryptocurrency is finding it hard to maintain significant momentum and is moving sideways from the previous two weeks, mainly due to the absence of any substantial improvement. The newly elected mayor of New York City, Eric Adams, has stated that he received his first pay check in cryptocurrencies.
Adams stayed true to his promise to take his first salary check-in BTC and ETH. Adams had previously said that NYC is the centre of the world, and now he wants to make it the centre of cryptocurrency and other financial innovations. He said that being at the forefront of such innovation would create more jobs and improve the economy, but it would also provide an opportunity to host talent from all over the world.
On the other hand, Russia has proposed a full ban on cryptocurrencies, including mining and the use of cryptocurrencies. The Central Bank of Russia (CBR) has called for an immediate stop to cryptocurrency trading. However, the increased illegal activities and potential risks of financial instability associated with the cryptocurrencies prompted Russian Bank to call for a ban. This announcement came right after the CBR displayed interest in securing commercial banks’ information regarding private money transfers. This news negatively impacted BTC/USD prices and dragged the leading crypto further lower.
The CEO of MicroStrategy, Michael Saylor, has said that he has no intentions of selling his firm’s $5 billion stash despite the 40% drop in the value of bitcoin. Saylor said he was a bitcoin bull and had no intention to alter the multi-billion-dollar BTC acquisition plan. MicroStrategy was the first publicly listed corporation in the US to acquire and hold BTC as part of its balance sheet in August 2020. It is estimated that the firm has about 124,391 BTC tokens worth about $5.2 Billion. The stash is continuously increasing, and the latest news that Saylor had no intention of selling BTC provided some support to the declining prices of BTC.
Furthermore, the rising strength of the US dollar on Thursday also added some negative pressure on BTC/USD as both have a negative correlation. For example, the US Dollar Index, which measures the greenback’s value against the basket of six major currencies, rose to 95.79. The dollar gathered its strength partly due to its safe-haven status and partly due to rising hopes of a rate hike. The rising tensions between Russia and Ukraine raised uncertainty in the market and supported the US dollar, ultimately dragging BTC/USD to the downside.
BTC/USD Intraday Technical Levels
Pivot Point: 41617.5
BTC/USD – Technical Outlook
Bitcoin’s price increased its momentum to break through the $42,500 barrier. On the other hand, BTC struggled to gain momentum for a move above the $43,500 resistance zone. Before the bears appeared, a high near $43,497 was formed.
As a result, the price fell below the $42,000 support level and the 100 hourly simple moving average once more. Moreover, on the hourly timeframe of the BTC/USD pair, there was a break below a primary bullish trend line with support near $42,000.
The first significant support is seen near $39,200. A break below the $39,200 support level could trigger another considerable decline. The next major support is near $38,500, below which the price could fall as low as $38,000. All the best!