Bitcoin Violates $30,000 Psychological Level
The BTC/USD was closed at $30,847.0 after placing a high of $31,924.0 and a low of $30,514.0. BTC/USD dropped on Monday and extended its loss to its lowest since June 26. Bitcoin fell to $30,000 for the first time since June that also dragged other digital coins lower as the leading crypto tends to drive the price of the whole market. On Monday, the CoinMarketCap data reported that about $98 billion was wiped off the entire cryptocurrency market in 24 hours.
The steep decline in bitcoin came in after a massive plunge in the global stock markets. The Dow Jones Industrial Average and other famous indexes had their worst day since last October on Monday. The decreasing price of stocks and risk assets could be attributed to the concerns of the quality and strength of the economic recovery. Broader risk assets, including Treasury Yields, also plunged on Monday. This, coupled with the recent bitcoin weakness, sent the crypto market further towards the downside.
Furthermore, last week, a group of Paraguayan lawmakers presented a Bitcoin bill in the National Congress. However, it turned out to be a very different proposal than what crypto followers were expecting. There no mentioning of making bitcoin or any other cryptocurrency as legal tender anywhere in the proposal; instead, the bill seeks to control and regulate cryptocurrency transactions and establish taxes. The law proposed that the Central Bank of Paraguay will be the comptroller of all entities related to cryptocurrencies.
The senator of the country, Fernando Silva Facetti, said that this was not a legal tender. Instead, this was a commodity, and the purpose of the law was to regulate and control the crypto industry, which was the base project.
On the other hand, the former prudent Bear Fund Manager David Tice warned about investing in bitcoin. He further said that in an environment of negative statements from central banks and regulators worldwide like the Bank of England, it was hazardous to hold bitcoin today.
He reiterated the comments from the Bank of England when in May, the governor of BOE, Andrew Bailey, said that cryptocurrencies were dangerous and had no intrinsic value. He also said that investors should put money in cryptocurrencies if they expect to lose it all. The extreme negative comments from BOE were also backed by Christine Lagarde, the president of ECB. Tice said that it would not be wise to hold bitcoin in such an environment, which weighed heavily on BTC/USD.
BTC/USD Intraday Technical Levels
Pivot Point: 31095.0
BTC/USD - Technical Outlook
On Tuesday, the leading cryptocurrency, Bitcoin, is trading dramatically bearish at 29,600 levels. The pair has violated the strong support level of 30,925 level, and now this level will be working as a resistance. On the 4-hour timeframe, BTC/USD has formed a bearish engulfing candle that’s supporting a strong selling bias among traders. Therefore, the selling trend dominates on Tuesday. Bitcoin’s immediate support prevails at 29,300 level, but the breakout of this level will expose BTC towards the next support level of 27,445. Our previous reports discussed how bearish Bitcoin’s technical outlook is, and now it’s testing the same levels we discussed previously. Bearish bias dominates on Tuesday. All the best!
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