Symmetrical Triangle Breakout
The BTC/USD remained flat throughout the day; however, it posted small losses as it came under pressure. A combination of negative reports from around the globe weighed on the leading cryptocurrency and kept its movement almost flat on Monday. Bitcoin came under inspection in the United Kingdom as the most significant police force in the country called for a new authority to freeze cryptocurrency assets. This report came in just days after the financial watchdog said that many crypto businesses were not meeting anti-money-laundering standards. On Monday, the Times of London reported that the detectives with the London Metropolitan Police demanded the power to freeze criminal's crypto assets in the same way they can stop them from transferring funds. The report also suggested that the police service was also called the government to make legislative changes that would make it difficult for criminals to transfer crypto-assets.
On the other hand, in a report from the Australian Competition & Consumer Commission (ACCC), about $851 million worth of losses was lost against scammers in 2020. The commission reported about 1,985 reports of bitcoin scams resulting in $26.6 M in losses. According to the Deputy Chair of ACCC, Delia Rickard, the scammers were availing the coronavirus situation and exploited the victims. Rickard said that during the pandemic and lockdowns, everyone was going through emotional and financial vulnerabilities and scammers took advantage of the situation through various methods. The scam that rose in popularity was the bitcoin-related scam. This revelation added further pressure on the BTC/USD prices as the news negatively affected bitcoin's reputation.
Furthermore, China continued its harsh strikes on bitcoin and crypto-assets as the country recently blocked the social media accounts of several crypto influencers. The Chinese government attempted a fresh attack on crypto-related activities and banned social media accounts of famous cryptocurrency enthusiasts over the weekend.
The reports of proponents on the popular Chinese social media platform, Weibo, were blocked by the Chinese government to ensure that all crypto transactions were illegal and any promotion of such unlawful activities will not be permitted. China's continuous attack on the entire crypto industry added further weight to the BTC/USD prices on Monday. Meanwhile, according to Trump, Bitcoin seemed like a scam, and he did not like bitcoin as it was another currency competing against the dollar. He said that he wanted the dollar to be the world's currency and as bitcoin was competing with it, he did not like it. After his comments, the investors assumed that Trump feared the leading crypto as it could make the dollar lose its status as a world reserve currency. This assumption added strength to bitcoin prices; however, BTC/USD remained flat throughout the day.
BTC/USD Intraday Technical Levels
Pivot Point: 34838.7
BTC/USD - Technical Outlook**
The BTC/USD shows a dramatic selling trend, as the leading crypto pair has dropped from 36,500 level to 33,850 level on Tuesday. Most of the strong selling trend triggered upon the breakout of a symmetrical triangle pattern that we can see on the daily timeframe. The pair supported the Bitcoin around 35,587 level, but the breakout of this level is capturing sellers' attention. On the lower side, the BTC/USD pair's next support holds around 30,900 levels. At the same time, the resistance continues to be found at around 34,123 levels. On the 4-hour timeframe, Bitcoin is trading in an oversold zone, and there's a chance of bullish correction until 34,170 and 35,492 levels today. However, bearish bias still dominates. All the best!
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