Downward Trendline Breakout
The BTC/USD was closed at $39,004.0 after placing a high of $39,021.1 and a low of $34,984.0. Bitcoin reached near $40,000 level on the weekend as the CEO of Tesla, Elon Musk, said that the company would resume its bitcoin transactions on one condition. The billionaire said that Tesla would restart allowing bitcoin transactions to confirm reasonable clean energy usage by miners and the positive trend. This reaction from Musk came in after the CEO of a South African asset manager Sygnia, said that the tweets of Musk on bitcoin prices were manipulating the market and should be investigated by the U.S. Securities and Exchange Commission.
The comments of Musk about cryptocurrencies on social media often send prices upside or downside, but they also appeared to have a bit immediate effect. On Sunday, bitcoin prices rose about 8% after Musk talked about resuming bitcoin transactions in his company on one condition of using clean, renewable energy. Furthermore, the latest dip in bitcoin prices has encouraged Canadian investors to take advantage of low prices, and hence, the demand for bitcoin has increased in Canada. Despite the steep market correction, the Canadian Bitcoin ETF added to its holdings and offered further evidence that market participants were capitalizing on heavily discounted prices.
According to Bybt data, the Purpose Bitcoin ETF has added about 285 BTC over the past seven days and nearly 2000 BTC since May 15. The Canadian Bitcoin ETF launched in February has accumulated 19,692 BTC, and the numbers are rising day by day. This news also supported the rising prices of BTC/USD.
On the other hand, the Investment Bank JPMorgan Chase has warned against a potential further decline in bitcoin prices. The bank said that it expects an oncoming bear market in the bitcoin. The analysts at the bank looked at the trend in bitcoin futures and warned that an unusual development reflected weak institutional demand for bitcoin at the moment. However, several people disagreed with the analysis, and BTC/USD kept rising for the day.
Meanwhile, the President of the European Central Bank, Christine Lagarde, shared her views about making bitcoin legal tender by El Salvadore. She assured that the policy of the central bank on bitcoin and other cryptocurrencies has not changed. She also stated that having a dual tender in a particular economy could raise difficult issues. Lagarde said that the move from El-Salvadore had not changed Central Bank’s approach towards crypto assets.
BTC/USD Intraday Technical Levels
Support Resistance
36318.1 40355.4
33632.6 41706.8
32281.1 44392.5
Pivot Point: 37669.7
BTC/USD - Technical Outlook
On Monday, the BTC/USD price continues trading with a bullish bias at 39,268 level after violating the downward trendline resistance level of 36,953 level. For the moment, Bitcoin is gaining support at 38,120 level along with a resistance of 40,486 level. The MACD has crossed over 0 (crossover point), demonstrating solid bullish bias among investors. The 50 periods EMA also supports an upward movement in the BTC/USD pair and the Three White Soldiers candlestick pattern. Bitcoin’s resistance stays at 40,486 and 41,706 levels today. All the best!
JOIN LONGHORNFX TODAY
24/7 live support, lightning fast withdrawals, guaranteed safe and reliable trading platforms with a true ECN broker.