Dramatic Surge in Bitcoin
The BTC/USD was closed at $35,407.0 after placing a high of $35,430.0 and a low of $33,906.0. BTC/USD advanced on Sunday and extended its gains for the 5th consecutive session to reach above $35,000. The leading cryptocurrency topped $39,000 on Sunday for the first time since mid-June as the market sentiment turned bullish after remaining under pressure following a recent sell-off. The current bullish trend in bitcoin was driven by the global sell-off in stocks and investor's buy-the-dip behavior. The recent bitcoin crash below the $30,000 level-triggered institutional investors and retail traders to wait for a dip in BTC/USD to enter the market at lower prices.
The massive purchase of BTC/USD added about $114 billion to the entire cryptocurrency market in just 24 hours over the weekend that pushed the leading cryptocurrency. It improved the mood of the whole market. The inflows from business and institutional investors are given the recent crackdown below $30,000 added strength in the leading cryptocurrency. Meanwhile, the CEO of Twitter, Jack Dorsey, and CEO of Tesla, Elon Musk, along with the CEO of ARK Incest Cathie Wood, recently spoke during a highly anticipated bitcoin conference called "The B-Word."
In the conference, the billionaire Elon Musk said that Tesla might start accepting bitcoin payments once again for its vehicle purchases. A more significant share of its mining process has shifted to renewable energy. Tesla halted accepting bitcoin as a payment mechanism for its vehicle purchases in May after environmental concerns emerged in the market due to bitcoin mining. The mining process includes an energy-intensive process of creating new coins by solving complex math problems. The computational power requires to complete the process consumes a lot of energy.
Meanwhile, other positive headlines for bitcoin also added strength to the BTC/USD prices. Amazon has said that it was looking to add a digital currency and blockchain expert to its payments team. Some suggested that it was looking a closer look at bitcoin for this purpose. According to an Amazon spokesperson, the company was inspired by the innovation happening in the cryptocurrency space and explored ways to add it to Amazon.
The combination of factors, including the latest buy-the-dip behaviour and recent positive talks from Twitter and Tesla CEO, triggered the bullish momentum in bitcoin that eventually turned the whole market mood into bullish as the entire cryptocurrency market cap increased.
BTC/USD Intraday Technical Levels
Support Resistance
34398.6 35922.6
33390.3 36438.3
32874.6 37446.6
Pivot Point: 34914.3
BTC/USD - Technical Outlook
The leading cryptocurrency, Bitcoin, is trading with a solid bullish bias at 38,285 level. Bitcoin has violated the strong resistance level of 34,800 and 36,650 levels. On the upper side, the BTC/USD's next resistance stays at the 40,900 level. This level can give a hard time to bulls, and a bullish breakout of 40,900 level can expose Bitcoin price towards 43,085 level and breakout of 45,550.
The BTC/USD has crossed over the 50 periods EMA that's suggesting a solid bullish bias among investors on the daily timeframe. The daily MACD is also soaring to crossover into the buying zone; therefore, the bullish crossover above 0 can drive more buying in BTC. Traders will be keeping their eyes on the 40,900 as a breakout of this level will expose Bitcoin towards 47,430. At the same time, the support stays at 36,650. All the best!
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