Bitcoin Supported at $31,450
The BTC/USD was closed at $31857.0 after placing a high of $33194.0 and a low of $31170.0. BTC/USD dropped on Thursday and extended its decline after research by the Cambridge Centre for Alternative Finance showed that the mining power of China disappeared overnight as soon as the crackdown was started.
The article suggested that the share of bitcoin mining from China has been declining since 2019 as it has fallen from 75.5% in September 2019 to 46% in April of this year. The crackdown is still enacted, and the further moves from various Chinese provinces will reduce the figure a lot smaller. The research also revealed that the bitcoin mining in China was already reducing far before the recent heavy crackdown last month. In June, Chinese authorities ordered banks and financial institutions to cease any crypto-related services.
Meanwhile, the U.K.'s FCA launched a $15 million digital marketing campaign to warn traders of the risks associated with the cryptocurrency. As part of its efforts to educate millennials, the country's financial watchdog, the Financial Conduct Authority (FCA), planned a marketing campaign to warn young investors about the risks associated with the crypto investment. The targeted age for the campaign is set as 18 to 30 years.
According to the FCA Chief executive, Nikhil Rathi, the move came in after previous warnings from governments that stated that cryptocurrency investment was associated with high risk and investors should be prepared to lose their money while investing. These comments and the campaign's launch added weighed on the Bitcoin that dragged BTC/USD downwards.
On the flip side, MicroStrategy's Michael Saylor has said that Bitcoin was a big tech without the company. He compared the leading cryptocurrency with Apple, Google, and Facebook. He said that bitcoin has similar dominance to these big tech giants, but it lacked a company. Furthermore, the former U.S. Treasury Secretary, Steve Mnuchin, said that the decision to invest or store value in bitcoin was a personal choice of anyone; however, the asset must be governed by a regulatory body to prevent its use for illegal activities.
He further said that he would not want to add bitcoin to his portfolio, but if people wanted to buy bitcoin as a substitute for gold or some other asset, it was fine. He reiterated that bitcoin should be regulated and put under BSA compliance.
Moreover, the comeback of the U.S. dollar also played an essential role in driving down the prices of BTC/USD. The U.S. Dollar Index measures the greenback value against the basket of six major currencies, moved up to 92.69 level, and supported the U.S. dollar that ultimately weighed on BTC/USD as both have a negative correlation between them.
BTC/USD Intraday Technical Levels
Support Resistance
30953.4 32977.4
30049.7 34097.7
28929.4 35001.4
Pivot Point: 32073.7
BTC/USD - Technical Outlook
On Friday, the leading cryptocurrency is trading with a slightly bullish bias at 31,937 level, bounced off above the support level of 31,470. On the 4 hour timeframe, the BTC/USD has closed a hammer pattern at 31,470 level, suggesting odds of a bullish reversal in Bitcoin. However, the breakout of 31,470 support levels exposes the Bitcoin price towards 30,219 and 29,185. The 32,850 will be the to extend hurdle to the BTC/USD pair on the resistance side. Besides this, the downward trendline and 50 periods EMA will be extending resistance at 33,418 levels today. A leading indicator like MACD is staying below 0, demonstrating a selling trend in Bitcoin. However, a slight bullish correction seems imminent above the 31,450 level today. All the best!
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