Technical Analysis

BTC/USD Analysis – July 29, 2021

By LonghornFX Technical Analysis
Jul 29, 20213 min

Bitcoin Bounces-off 50% Fibonacci Retracement

The BTC/USD was closed at $40,004.0 after placing a high of $40,899.0 and a low of $38,822.0. BTC/USD extended its upward momentum and reached near the $41,000 level on Wednesday after rising continuously for eight straight days.

Bitcoin enjoyed another day of a bullish trend on Wednesday after a bitcoin mining company since 2013, Genesis Digital Assets, announced that it had added a $125 million round of equity funding to support the expansion plans.

The funds came in from Kingsway Capital, the UK-based private equity fund. Kingsway is focused on frontier emerging markets and has over $2 billion in assets under management. The CEO of Kingsway Capital, Manuel Stotz, joined the boards of directors at Genesis and said that bitcoin would be the most important technology for financial inclusion of the global poor and unbanked. He further said that mining provides security to make it possible, and the Genesis team has been building highly profitable large-scale bitcoin mining farms for nearly 8-years, and the industry has only been around for twelve years.

Stotz finally said that Kingsway was incredibly excited to support Genesis and his funds appreciated the experienced bitcoin mining as they believed in the miner’s future. According to the announcement, Genesis has mined over $1 billion in bitcoin to date, and the company had plans to expand its operations to get a more significant share of the global bitcoin mining.

ProFunds announced on Wednesday the launch of its Bitcoin Strategy ProFund (BTCFX). It will be the first publicly available U.S. mutual fund that will generally track the price of bitcoin. Michael Sapir, the CEO of ProFunds, said that the Bitcoin Strategy ProFund would offer traders the opportunity to attain exposure to BTC without having to open a new account with an unregulated party as it is required to buy bitcoin directly. In this way, investors can experience bitcoin investment without being directly involved with it, and this news added further strength to the BTC/USD prices.

On the other hand, U.S. Senator Elizabeth Warren mentioned the Decentralized Finance, cyber-attacks related to crypto, and threats that stablecoins pose as risks to the financial system in a letter to Treasury Secretary Janet Yellen. She urged the government to form a regulatory strategy to decrease the growing risks of cryptocurrencies on the current financial system. She was urging Yellen to take action against cryptos, and this letter posed a negative impression on bitcoin and the whole crypto market.

Moreover, the CEO of Galaxy Digital Michael Novogratz said that cryptocurrencies like bitcoin had surged again because of the inflows from institutional investors. In response to U.S. Senator Elizabeth Warren’s anti-crypto letter, Novogratz said that the lawmakers at D.C. needed education on cryptocurrency.

BTC/USD Intraday Technical Levels

Support Resistance

37478.4 40605.4

35393.7 41647.7

34351.4 43732.4

Pivot Point: 38520.7

BTC/USD - Technical Outlook

On Thursday, the leading cryptocurrency, Bitcoin, once retests the $40K resistance level. Despite strong bullish bias, the Bitcoin failed to violate the 40,450 resistance level. On the daily chart, the bullish power still seems strong as the BTC/USD has closed "three white soldiers". This candlestick pattern suggests a strong bullish trend in Bitcoin; therefore, the breakout of 40,475 resistance level can expose BTC/USD price towards 41,365 and 43,500. On the flip side, the support continues to hold around 39,017 and 37,650 levels. The MACD is holding in a buying zone. Therefore, the bullish bias dominates Bitcoin prices. All the best!


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