Can Bitcoin Violate $40K Level Today?
The BTC/USD was closed at $40,041.0 after placing a high of $40,623.0 and a low of $39,282.0. After rising continuously for eight consecutive sessions, BTC/USD remained flat on Thursday and closed the day with no change. The CEO of Tesla, Elon Musk, hinted about Tesla's bitcoin holding and said that the company might own close to 42K Bitcoin. A shareholder of Tesla, Dave Lee, ran a calculation on Twitter and showed the approximate number of bitcoins held by Tesla.
According to his estimation, Tesla holds about $1.47 billion in Bitcoin. In response to his tweet, Elon Musk replied that Tesla did not as much as bitcoin he estimated. He further said that the estimation was close but not true. Meanwhile, the International Monetary Fund took a step to advise against making any digital asset the nation's currency. IMF advised not to make bitcoin or any other form of crypto their national currencies. The post did not specifically mention any country or region while warning China and EL Salvador.
China has been working on making a digital version of its national currency and wants to take its monetary system in a whole new direction. The biggest example of such a step could be El Salvador, which recently made bitcoin its legal tender. The advice given to all countries from IMF added pressure on BTC/USD and kept it steady throughout the day. Furthermore, the Ministry of Finance of Israel published a draft law on Tuesday that would require investors to report bitcoin holdings of more than $61,000 to tax authorities. This bill was proposed to optimize tax collection by requiring the reporting of bitcoin and other cryptocurrency holdings.
According to this bill, if approved, anyone in the country who transacts bitcoin or other cryptocurrencies shall have to report holdings worth $61,000 or above to the authorities.
On the other hand, the Business Intelligence and mobile software firm MicroStrategy has pledged to buy more bitcoin despite reporting an impairment loss of $424.8 million in Q2. The CEO Michael Saylor said that they continued to be pleased by implementing their digital asset strategy. Their latest capital increase allowed them to expand their digital holdings, exceeding 105,000 bitcoins. They showed intentions further to deploy additional capital into their digital asset strategy. These comments kept the BTC/USD higher, and hence, the cryptocurrency remained steady throughout the day.
BTC/USD Intraday Technical Levels
Support Resistance
39341.0 40682.0
38641.0 41323.0
38000.0 42023.0
Pivot Point: 39982
BTC/USD - Technical Outlook
On Friday, the leading cryptocurrency, Bitcoin, continues to retest the $40,000 resistance level. At the moment, it's trading at 39,730 level, and technically, it's in the overbought zone. The MACD demonstrates that the buyers are exhausted below $40K, and typically they start doing profit-taking. If such a thing happens, the BTC/USD's support will prevail at 38,650 level that marks 23.6% Fibonacci retracement level. Below this, the next support stays at the $36,448 level.
Conversely, the breakout of 40,475 resistance level can expose BTC/USD price towards 41,365 and 43,500. On Friday, bearish bias dominates Bitcoin prices below the $40K level. All the best!
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