50 EMA Set to Underpin Bitcoin Price
The BTC/USD was closed at $36,649.2 after placing a high of $37,933.0 and a low of $36,559.0. Bitcoin came under pressure on Thursday and gave up a minor portion of its profits earned the previous day after the world’s most influential banking regulator, the Bank for International Settlements (BIS), came in front.
The Basel Committee from BIS proposed that banks with bitcoin exposure must set aside enough capital to cover losses on many bitcoin holdings in full. This step would prevent the widescale use of cryptocurrency by big lenders. The Basel Committee, comprised of members from the world’s leading financial centers, has proposed splitting crypto assets into two groups: those eligible for treatment under the existing framework and the others that are not eligible. According to the announcement, bitcoin and similar cryptocurrencies will fall into the second category as they pose additional and higher risks.
According to the proposal by Basel Committee, the risk weighting of 1250% for Bitcoin, Ethereum, and other cryptocurrencies. This risk would require banks to hold capital equivalent to the face value of the exposure. The Committee is accepting responses from stakeholders with a deadline for submission on September 10. Despite repeated warnings from central banks worldwide that investors in the cryptocurrency must be ready to lose all their money, El Salvador became the world’s first country to adopt bitcoin as legal tender. The major economies like the U.S. and China have adopted a stricter approach to developing their own central bank digital currencies. The Basel Committee stated that bank exposures to crypto-assets were limited. If capital requirements are not introduced, their continued growth could increase risks to global financial stability from cyber attacks, fraud, money laundering, and terrorist finance.
On the other hand, China expanded its bitcoin mining ban as two Chinese provinces named Qinghai and Xinjiang took steps towards limiting bitcoin mining. The miners in the provinces reported that they were ordered not to start any new mining projects as all existing mining projects have also stopped. This news also added weight to bitcoin prices and added in its losses on Thursday.
BTC/USD Intraday Technical Levels
Pivot Point: 37047.1
BTC/USD – Technical Outlook
On Friday, the BTC/USD pair is trading with a slightly bullish bias at 37,115 level. Bitcoin tested the strong resistance level of 38,120 level extended by a downward trendline on the 4-hourly timeframe. Bitcoin is still likely to face resistance at the 38,120 level, and a bullish breakout exposes the pair’s price towards the next resistance area of 40,405 triple top level. Speaking about Bitcoin’s support, the 50 EMA level is underpinning the BTC around 35,906 level. Bearish crossover of this level exposes Bitcoin price towards next support level of 33,210 level. All the best!