Technical Analysis

BTC/USD Analysis – June 04, 2021

By LonghornFX Technical Analysis
Jun 4, 20213 min

Doji Pattern to Drive Correction!

Bitcoin extended its gains for 2nd consecutive session on Thursday and moved towards $40,000. Despite a massive comeback of the U.S. dollar amid the stronger-than-expected macroeconomic data, the cryptocurrency BTC/USD rose on Thursday amid various favorable factors driving its prices on the upside.

A global peer-to-peer bitcoin exchange platform, Paxful announced the launch of Paxful Pay. This new initiative will allow businesses worldwide to accept bitcoin as payment for their goods and services. The new eCommerce solution, Paxful Pay, will allow buyers to make purchases with 400 payment methods. In contrast, the asset used for purchases will be exchanged into bitcoin that will be sent to the digital wallet of the merchant. This news added strength to the Bitcoin prices that remained green for the day.

Meanwhile, a former U.S. congressman Ron Paul said that he wanted to legalize the competition of the U.S. dollar, including the bitcoin. Then he wanted to let the people decide which money to use, not the government. He added that freedom of choice would sort the problem. He elaborated that the government will never allow anything to compete with the dollar on the national level. He stressed that governments have been controlling the money over the centuries, and they will never give up their control, which means that bitcoin might not get legalized. However, he argued that he would put up his points for the case to legalize the freedom of choice. He concluded that many people were enthusiastic about bitcoin, and many believed that it would be the only money left after replacing the dollar in the future. He added that dollar will remain around but could lose its worth. These comments also added further strength to the rising prices of BTC/USD.

Furthermore, during his recent interview at CNBC, Francis Suarez, the Mayor of Miami city, revealed that he holds bitcoin and ether on his portfolio. Saurez is a well-known advocate of bitcoin, and he has been working continuously to pass positive Bitcoin crypto regulation t the city. Earlier, the Mayor had also been under discussion as he paid salaries of state employees in Bitocin and allowed citizens to pay taxes in crypto. He also regretted that he could not buy the recent dip due to his busy schedule, but he unveiled his plans to do it in the near future.

On the other hand, the U.S. dollar, which is also considered as negatively correlated to the BTC, rose on Thursday. The U.S. Dollar Index that measures the greenback value against the basket of six major currencies rose to the 90.55 level and added pressure on BTC/USD rising prices. The gains in BTC/USD remained limited on the day amid a comeback in the U.S., and hence, bitcoin struggled to reach the $40,000 level.

BTC/USD Intraday Technical Levels

Support Resistance

36503.8 38364.5

35417.7 39139.1

34643.1 40225.2

Pivot Point: 37278.4


BTC/USD - Technical Outlook**

The BTC/USD pair is trading with a bearish bias at 37,515 level on the technical front. The leading crypto pair faced strong resistance at 39,440 level, and closing of candles below this level has driven strong bearish correction in the BTC/USD pair. At the moment, the closing of doji and spinning top candles are driving bearish movement in Bitcoin. However, the pair's next support holds around 36,634 levels. A bearish breakout of 36,634 levels opens up further room for selling until 34,750. Taking a look at the MACD, the histograms are being formed over 0 levels, and these are supporting buying trends in Bitcoin. All the best!


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