Symmetrical Triangle Breakout
The BTC/USD was closed at $33090.0 after placing a high of $34624.0 and a low of $32616.0. BTC/USD remained under pressure on Monday amid some adverse developments surrounding Bitcoin and the strength in the U.S. dollar. A sales consultant from the United Kingdom, Hisham Chaudhary, has been found guilty of seven offenses under the Terrorism Act by a jury at Birmingham Crown Court. The 28-year old sales consultant was found guilty of using Bitcoin to fund the IS group, and the court has announced that he will be sentenced on September 3.
However, Hisham Chaudhary has denied the accusations and said that he did not use the cryptocurrency to back the terrorism by the organization and spreading propaganda online. As per the investigation, the sales consultant raised thousands of British Pounds and converted them into BTC, which he sent to free IS supporters from detention camps in Syria. Hisham denied the accusation and said that his actions had a humanitarian purpose. However, the court found him guilty and sentenced him on September 3. This news added weight to the BTC/USD as, after this case, it was proved that bitcoin was used in terrorism activities.
According to some analysts, bitcoin and other cryptocurrencies were not necessarily the ideal storage mechanism for illicit funds. It is because, unlike other forms of value transfer like cash, cryptocurrencies are inherently transparent. Every transaction made in BTC can be seen in a publicly visible ledger. Hence, with the right tools, the bad actors could be prevented from terrorism financing and other crimes.
On the other hand, JPMorgan offered its views on the bituminization of El Salvador, the country which made BTC legal tender recently alongside the U.S. dollar. According to JPMorgan, there was no tangible economic benefit attached to adopting bitcoin as a second form of legal tender. The American megabank continued criticizing El Salvador’s decision of making Bitcoin legal tender and warned of the potential risks involved for both country and the cryptocurrency.
According to a report published by the JPMorgan expert group, this move from El Salvador could put pressure on the Bitcoin network. The report suggested that bitcoin was highly illiquid as most of the trading volumes of BTC were internalized by major exchanges, with more than 90% of BTC not changing hands in more than a year. The exerts at JPMorgan said that using BTC as legal tender in the country would potentially put a significant limitation on the capability of bitcoin to serve as a medium of exchange.
All these negative comments and criticism from JPMorgan added further pressure on the prices of BTC/USD on Monday. Additionally, the strength in the U.S. dollar driven by the increased focus of investors over the release of U.S. Consumer Price Index data from June also added extra pressure on BTC/USD and dragged its prices further on the downside.
BTC/USD Intraday Technical Levels
Support Resistance
32262.6 34270.6
31435.3 35451.3
30254.6 36276.6
Pivot Point: 33443.3
BTC/USD - Technical Outlook
On Tuesday, the leading cryptocurrency Bitcoin has violated the symmetrical triangle pattern that supported it at 33,335 levels. The closing of candles below 33,335 support is adding strong selling pressure on Bitcoin. The BTC/USD has closed three black crows patterns on the hourly timeframe, demonstrating strengthening bearish power among investors. On the downside, the BTC/USD’s support holds around 32,575 level that’s being extended by a double bottom support level. Breakout of this support level exposes the BTC price towards the next support area of 32,135 level. At the same time, the resistance continues to hold around 33,335 and 34,060 levels today. Selling bias dominates in Bitcoin today. All the best!
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