Symmetrical Triangle Pattern
The BTC/USD was closed at $34168.0 after placing a high of $34168.0 and a low of $34108.0. After declining for the previous two sessions, BTC/USD managed to recover some portion of its earlier losses on Tuesday. Bitcoin saw a plunge in its price during early trading hours after China's central bank issued a notice to stop a company's operations immediately, which was allegedly providing cryptocurrency-related services. The People's Bank of China and the regulators in the capital city ordered the closure of a Beijing-based software manufacturer, Beijing Quadao Cultural Development Co. Ltd.
The authorities in China suspended the operations of the software firm. They took down the company's website as it was suspected to have ties with the trading of cryptocurrency. The government of China has already announced a ban on any service related to cryptocurrency within the limits of its country. On Tuesday, the People's Bank of China stated that no company should have any direct dealings with any crypto-related entities. The statement also noted that any company should provide no crypto-related venues, commercial displays, or advertisements.
This move to suspend a firm's operations was the latest in a long-running crackdown by the Chinese government on cryptocurrency. In May, the Chinese authorities issued an official statement to impose tighter regulations on crypto assets. In June, the country's central bank announced to terminate the account of any customer involved in the crypto-related activity. Meanwhile, the bitcoin mining facilities operating in China were also severely affected. Most of the miners were forced to close down their operations, and some chose to transfer their operations abroad. The rest of the miners have been provided with a deadline to cease their operations until the end of the year. This FUD created by China has been weighing on BTC/USD since its value peaked in April.
Additionally, Chinese miners' recent turning-off has also led to a massive drop in bitcoin's hash rate. Furthermore, the Brazilian detectives have reported arresting the President of Bitcoin Banco Group for allegedly defrauding investors more than $300 million. Claudio Oliveira, the self-proclaimed "Bitcoin King," was accused of apparently masterminding a 1.5 billion Brazilian Reals fraud through a cryptocurrency scheme that accounts for about $300 million.
On a positive note, the Ukrainian e-bank Monobank has put forward its interest to offer customers bitcoin trading by July. The bank has already applied to the Bank of Ukraine seeking approval of its application for a bitcoin debit card. This came in after the government of Ukraine was progressing to legislate the cryptocurrency. The Ukrainian government has been making progress towards regulating the cryptocurrency in the country. An official December 2020 report had shown that the Parliament of the country was considering the ominous crypto regulations in the country.
BTC/USD Intraday Technical Levels
Pivot Point: 34222.3
BTC/USD - Technical Outlook
On Wednesday, the leading cryptocurrency pair is trading with a slight bullish bias at 34,786, gaining support at 32,445. The technical side of Bitcoin remains primarily unchanged as it continues trading choppy in between a symmetrical triangle pattern. The support level is extended by an upward trendline on the 4- hour timeframe at 32,445 level. The Bitcoin is trying to cross below 50 periods EMA that's extending immediate support at 34,250. The bearish crossover of the 32,245 support level can expose Bitcoin price towards the next support area, 30,565 and 29.244 support areas. At the same time, the breakout of 36,650 resistance can expose BTC toward 38,555 areas. All the best!
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