Technical Analysis

BTC/USD Analysis – July 15, 2021

By LonghornFX Technical Analysis
Jul 15, 20214 min

Bitcoin Rejected Below 50 EMA

The BTC/USD was closed at $32822.6 after placing a high of $33117.0 and a low of $31596.0. After declining for two consecutive sessions, BTC/USD ended its trading session on Wednesday with minor gains. During the first half of the day, BTC/USD remained depressed and extended its loss; however, in the second half of the session, bitcoin managed to recover its daily loss and ended its day with a little to no gain.

The flat movement of bitcoin during Wednesday could be attributed to the speculations indicating that bitcoin was on its way to face intensified government conspired opposition. After the conspiracy theories on possible attacks on cryptocurrencies, especially on Bitcoin, emerged in the market.

At CoinShares, Meltem Demirors, a Chief Strategy Officer, said that the bitcoin and crypto market would possibly see a crackdown during the coming months from elites and institutions as they were preparing for hyperinflation. She added that they would crush the middle class for this purpose and acquire all of their productive assets. She also called it 21st-century feudalism. Bitcoin and other unregulated, decentralized digital money revolutionized the financial markets and posed a threat to governments.

Thus, central banks have become sceptical and are looking for ways to control the flow of capital and profit from the blockchain. The increasing global coordinated regulatory actions against the crypto market give a view for a possible alarming situation where the efforts by governments might intensify in the coming months. These concerns and speculations kept BTC/USD lower for the day during early trading hours on Wednesday.

Meanwhile, the Anhui province in China also announced that Bitcoin mining in the area would be shut down as the crackdown on crypto miners continues. The Chinese government has plans to rot out all bitcoin miners and related projects from the nation within the next three years. This also kept BTC/USD under pressure on Wednesday.

However, Bitcoin managed to gain traction in the market and recover its loss for the day after the Brazilian Securities Commission announced that it had approved the first exchange-traded fund after tracking the performance of Ethereum in Latin America.

Furthermore, the global payment giant Visa was moving forward with its commitment to digital currency adoption and approved the development and issuance of a new BTC debit card. According to CryptoSpend, a Sydney-based crypto spending app, on July 14, Visa has approved the issuance of a physical debit card which will enable Australians to spend their bitcoin at local merchant shops. This news added a spark to the crypto market's dark environment and pushed BTC/USD higher.

Moreover, the declining value of the U.S. dollar on Wednesday also played an important factor in driving the BTC/USD higher on board. The U.S. dollar was sluggish across the board following the Fed chair, Jerome Powell, who said that Fed would continue to support its economy with stimulus measures until further progress growth. He said that the target level set by the Fed for a threshold of tapering was far from reaching, and the higher prices were just an effect of economic reopening and were temporary. These dovish comments weighed on the U.S. dollar negatively correlated with BTC/USD; hence it pushed the crypto higher.

BTC/USD Intraday Technical Levels

Support Resistance

31906.8 33427.8

30990.9 34032.9

30385.8 34948.8

Pivot Point: 32511.9

BTC/USD - Technical Outlook

On Thursday, the bearish sentiment continues to dominate Bitcoin price as it's trading at the 32,528 level. The BTC/USD pair has bounced off the support level of 31,580 level to retest the resistance level of 33,155 extended by 50 periods EMA line. At the moment, Bitcoin's immediate support prevails at 31,580 level, and the breakout of this level exposes the BTC towards the next support level of 30,219 level. Alternatively, the violation of the 33,150 - 33,418 range exposes its prices towards the next resistance area of 34,450 level. Technically, the bearish bias dominates the market as the 50 EMA and MACD support a selling bias. All the best!


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