Bitcoin Rejected Below 50 EMA
The BTC/USD was closed at $31824.0 after placing a high of $32427.0 and a low of $31211.8. After remaining depressed and falling continuously for six consecutive days, BTC/USD surged and turned green on Sunday to recover a little part of its previous losses. Over the weekend, the leading cryptocurrency remained under pressure; however, on Sunday, it saw some reversal. The declining prices of BTC/USD could be attributed to some negative developments around the network consisting of the recent comments from the CEO of MicroStrategy, Michael Saylor.
Saylor believes that Bitcoin was more like a digital property rather than a digital currency. He also stated that in his view, Bitcoin was a threat to the United States dollar and other forms of property like gold and real estate. He further reiterated that the U.S. government was not threatened by real estate, companies, buildings, or gold.
He added that bitcoin was demonetizing other forms of property as people have started thinking of investing in bitcoin rather than investing in real estate, gold, stocks, or starting a business. These comments from Saylor added pressure on BTC/USD.
Meanwhile, a popular Youtube Superstar and famed rapper, KSI, also known as JJ, shared his experience in investing in bitcoin. KSI was ranked second by the Sunday Times in its list of the top 100 UK influencers in 2019. JJ is also a part of the British Youtube group named Sidemen. Recently, the British influencer became a vocal fan of cryptocurrency and shared his experience in investing in bitcoin. He said that he made millions of pounds investing in bitcoin and other cryptocurrencies but eventually lost it when the market crashed. He revealed that he invested 2 million pounds in bitcoin and made 7 million pounds, but now he has lost all of it.
On the other hand, the authorities in Malaysia reportedly announced to destroy over $1.2 million worth of BTC mining rigs after they were impounded for operating illegally. It was not clear why the authorities decided to destroy the miners instead of selling them for scrap.
The local authorities arranged a steamroller to crush at least 1069 bitcoin miners that were confiscated from the residents of Malaysia trying to illegally mine the crypto using stolen electricity between February and April. Whereas, in the United States, the government was looking into the possibility of tracking cryptocurrency transactions to combat ransomware attacks that demand crypto payments.
As per the Federal Reserve Chairman Jerome Powell, if the United States had its digital currency in play, it would have made bitcoin disappear ultimately as bitcoin would serve no purpose. On the flip side, the Bank of America approved a new service that would enable some of its clients to trade bitcoin futures. The Bank, a vocal bitcoin critic for many years, has now decided to permit its customers to do transactions with the digital asset.
In 2018, the Bank of America blocked financial advisers and clients from trading in bitcoin-related investments. Now, the bank has offered the service to do transactions with bitcoin futures to a few selected customers due to a large amount of margin required to trade.
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 Monday, the bearish sentiment continues to dominate Bitcoin price as it's trading at the 31,828 level. The BTC/USD pair has bounced off the double bottom support level of 31,580 level to retest the resistance level of 32,225 extended by 50 periods EMA line. At the moment, Bitcoin's immediate support prevails at 31,170 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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