Bitcoin Heading towards 38.2% Fibo Level
The BTC/USD was closed at $40139.0 after placing a high of $40708.8 and a low of $39726.0. After rising sharply for two consecutive sessions, BTC/USD reversed its course on Tuesday and placed minor losses for the day. The losses in bitcoin could be a price correction or profit-taking, but there were also some adverse developments in the market. The Dutch Bureau for Economic Analysis director, Pieter Hasekamp, called for a complete ban on bitcoin. He published an essay titled "The Netherlands must ban bitcoin" and argued that bitcoin does not support money's three functions. The Netherlands must ban the mining, holding, or trading of the leading cryptocurrency.
He explained that bitcoin has no intrinsic value and is only considered valuable because others might accept it. He added that bitcoin does not support the functions like a unit of account, a means of payment, or a store of value. Finally, he put forward the most popular drawback of bitcoin-related to security concerns, including the fact that it can be used in illegal activities. There were high risks of scams involved with the usage of bitcoin. Besides, the U.S. Securities and Exchange Commission issued its regulatory agenda for 2021 in front of the public. The agenda conspicuously missed any mentioning of cryptocurrencies, blockchain, or specific tokens like bitcoin or Ethereum in its list of regulatory priorities for the year.
The omission of cryptocurrencies from the possible policy punch list of SEC was surprising as the recent issues regarding cryptocurrencies were not something that could be ignored, such as the mining energy consumption, increasing ransomware attacks paid in bitcoin, the potential threat of private cryptocurrencies to sovereign currencies declared by IMF and politicians and much more.
None of these reasons were enough for SEC to include regulation of cryptocurrencies in its list of priorities. This fact shocked the investors and weighed over the prices of bitcoin on Tuesday. Meanwhile, the law enforcement agents in China have arrested approximately 1,100 individuals on charges of using crypto in money laundering. This move by China gave a clear reminder that China is actively working towards a society where crypto holds no existence.
Additionally, China has long been home to more than half the world's bitcoin miners. Still, now Beijing has decided to send them out as the government has called for a severe crackdown in bitcoin mining and trading activities. These negative developments added further losses in BTC/USD prices on Tuesday. However, on Wednesday, the BTC/USD is trading with a bullish bias; let's take a look at the technical side of the market.
BTC/USD Intraday Technical Levels
Support Resistance
39255.53 40985.23
38549.87 42009.27
36820.17 43738.97
Pivot Point: 40279.57
BTC/USD - Technical Outlook
Bitcoin's bullish bias dominates in the market as the BTC/USD is trading at the 40,180 level. The BTC/USD pair has violated the symmetrical triangle pattern that's driving buying trends in BTC on a daily timeframe. On the higher side, the BTC/USD has the potential to go after 42,150 and 45,379 levels, primarily because of the symmetrical triangle breakout. Whereas the support levels stay at 39,120 and 37,880. 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. All the best!
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