Bitcoin Bounce off -32K Next Resistance
The BTC/USD was closed at $31767.0 after placing a high of $32804.0 and a low of $29545.0. After falling for two consecutive sessions, BTC/USD recovered on Wednesday as it moved upward and reversed its momentum. On Wednesday, Tesla CEO Elon Musk said that the company would likely start re-accepting bitcoin for its vehicle purchases as the cryptocurrency looked a lot more environmentally friendly. According to Musk, bitcoin was shifting more towards renewable energy, and many of the heavy-duty coal plants used in China have been shut down.
Musk added that he wanted to confirm that the renewable energy usage was most likely at or above 50% for bitcoin mining purposes. There was a trend towards increasing that number to approve Tesla for resuming the acceptance of bitcoin against its vehicle sale.
In May, the CEO of Tesla announced on Twitter that the company was suspending the vehicle purchases made with bitcoin out of concern over the rapidly increasing use of coal and fossil fuels for bitcoin mining. Since then, Beijing started cracking down on crypto and expelled the crypto miners from the country, who have reportedly started their practice elsewhere.
According to the latest data from Cambridge University, many miners have headed to the U.S., which has now become the second-biggest destination for the world's bitcoin miners. Musk said that long-term renewable energy would be the cheapest energy; however, it could not be achieved overnight. He continued that as long as there is a conscious and determined real effort from the mining community to move towards renewables, Tesla would support the bitcoin. These comments from Elon Musk added in the value of BTC/USD, and the cryptocurrency gained about 8% in the value.
Meanwhile, during the B-Word webinar on Wednesday, the CEO of Square, Jack Dorsey, had high hopes for the digital asset and aspired to the cryptocurrency bitcoin. He said that he hoped that bitcoin create world peace or help in creating world peace. These positive comments from big tech celebrities added to bitcoin's value and supported its surge on Wednesday.
However, some investors also believed that the jump in BTC/USD on Wednesday was also because of the so-called "buy the dip" opportunity. Many institutional investors, along with others, were waiting for a plunge in its value so that they can enter the market to book profits while it increases in value. Furthermore, the declining prices of the U.S. dollar on the day also added extra upward pressure on BTC/USD as both have a negative correlation. The U.S. Dollar Index that measures the greenback value against the basket of six major currencies fell to 92.73 from its daily high of 93.19 on Wednesday as risk-off market sentiment eased a little.
BTC/USD Intraday Technical Levels
Pivot Point: 30074.0
BTC/USD - Technical Outlook
The leading cryptocurrency, Bitcoin, has bounced off above 29,350 level to trade at 32,070 level. On Thursday, the BTC/USD pair is trading in a descending triangle pattern that extends resistance at 32,830 levels along with a support level of 29,380.
Bitcoin has formed a triple bottom level at 29,380 level, and the closing of candles above this level supports a bullish bias. Since the BTC/USD has closed a bullish engulfing candle on the daily chart, the bullish power is getting dominant. In addition to this, the 4-hour chart's MACD and 50 EMA are exhibiting a bullish crossover, suggesting buyers are taking control.
Therefore, the bullish breakout of 32,850 level exposes the Bitcoin price towards 34,650 (daily 50 EMA) resistance level. All the best!
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