Bitcoin Completes 50% Fibonacci Retracement
The BTC/USD was closed at $37296.0 after placing a high of $40515.6 and a low of $35276.0. BTC/USD extended its gains on Monday for the 6th consecutive session and reached its highest till June 15. Bitcoin surpassed the critical $40,000 level on Monday and reached a month and a half highest level after investors started liquidating their short positions to book profits combined with the speculations that Amazon.com Inc. was preparing to accept bitcoin payments by the end of 2021.
Bitcoin was experiencing bullish trades during the past six days after high-profile proponents including Elon Musk, and Jack Dorsey gave bullish comments about the cryptocurrencies at The B-Word conference. Despite concerns about its environmental impact, the Space X and Tesla CEO said that his company Tesla might start accepting Bitcoin payments against its vehicle purchases as the mining process has shifted towards renewable energy.
These bullish comments and the fact that BTC/USD fell below the $30,000 level triggered massive buying as investors that were long waiting for bitcoin prices to fell lower started buying to grab the opportunity of entering the market. Meanwhile, on Monday, rumors spread that the world's largest e-commerce company Amazon was reportedly working toward taking BTC payments by the end of the year. Some reports even mentioned that Amazon was looking to launch its own digital currency; however, no more details were revealed about this possibility.
These speculations might come in after Amazon published several new job openings, including positions particularly related to domain expertise in blockchain, distributed ledger, CBDC, and cryptocurrencies. After this news, almost all cryptocurrencies, including BTC, ETH, XRP, ADA, and DOGE, moved higher on board.
Meanwhile, the CEO of Twitter, Jack Dorsey, said that the power of cryptocurrency could potentially lead to a less aggressive and calmer planet. It will lessen financial inequality, ultimately allowing the regulators and politicians to focus on bigger-picture issues. These bullish comments from Dorsey added further strength to the leading cryptocurrency and pushed BTC/USD even further.
Furthermore, on Monday, Tesla reported that about $23 million bitcoin-related impairment dragged the quarterly operating income of the company. On the other hand, the weakness in the U.S. dollar also added further gains in BTC/USD on Monday. The U.S. Dollar Index (DXY) declined to 92.53 and weighed on the greenback that ultimately added further upward momentum in BTC/USD. The U.S. Dollar was weak ahead of the Fed monthly policy meeting scheduled for Wednesday and helped bitcoin add further gains as both have a negative correlation.
BTC/USD Intraday Technical Levels
Support Resistance
34876.2 40115.8
32456.3 42935.5
29636.6 45355.4
Pivot Point: 37695.9
BTC/USD - Technical Outlook
The leading cryptocurrency, Bitcoin, tested the $40K level but couldn't continue trading higher. The BTC/USD pair plunged to completed 50% Fibonacci retracement at 36,350 level. The MACD is still holding in a buying zone. Therefore, the bullish bias still dominates Bitcoin. The recent 4-hour closing suggests that sellers are getting exhausted over 50% Fibon level, and bulls are looming around 36,300. The 50 EMA is holding at 33,070 level, demonstrating there's still room for further bearish correction in Bitcoin. Therefore, the violation of the 36,250 level can expose Bitcoin price towards 35,200 level that's being extended by 61.8% Fibonacci retracement level. Below this, the next support prevails at the 33,850 level. On the higher side, resistance stays at 37,500 and 40,650. All the best!
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