Upward Channel Support
The BTC/USD was closed at $38061.0 after placing a high of $39324.0 and a low of $37733.7. Bitcoin extended its losses and continued its bearish streak for three sessions amid various negative developments surrounding cryptocurrencies. On Wednesday, the Finance Minister of El Salvador said that the country had sought technical assistance from the World Bank. Consequently, the World Bank said that it could not assist El Salvador’s bitcoin implementation due to its environmental issues and transparency drawbacks. The World Bank said they were committed to helping El Salvador in numerous ways, including currency transparency and regulatory processes. However, as the government has approached them for assistance on bitcoin, the World Bank has denied its support given the shortcomings related to environmental impact and transparency.
The refusal to assist El Salvador in this matter by World Bank weighed on the cryptocurrency Bitcoin and negatively turned the mood around the crypto market. Furthermore, the crypto market came under fresh pressure after a survey from Bank of America suggested that fund managers still do not trust bitcoin. They rather see biotin as a major bubble despite its massive price bust over the past months.
According to the survey, about 81% of the hedge fund managers that took part in the survey believed that bitcoin was a bubble. The survey included 660 participants who all together manage more than $660 billion in total assets for their clients. BTC/USD prices declined on Thursday after the results from the survey revealed many hedge fund managers still do not trust bitcoin.
On the other hand, the U.S. Dollar was high on board with a strong comeback after the release of the Federal Reserve monetary policy report. The report suggested that Fed officials predicted interest rate hikes in 2023, along with talks of tapering in asset purchases. The U.S. Dollar Index rose above 92 handles and weighed heavily on BTC/USD as both share a negative correlation.
BTC/USD Intraday Technical Levels
Pivot Point: 38372.9
BTC/USD - Technical Outlook
On Friday, the BTC/USD showing a slight bearish correction falling from 40,500 level to 37,329 level. However, the closing of the recent Doji candle over 38,037 level is demonstrating the bullish power. It looks like the sellers are exhausted, and buyers are ready to take over. Earlier this week, the BTC/USD pair violated the symmetrical triangle pattern that's now ready to drive buying trends in BTC on a daily timeframe. The BTC/USD can go after 42,150 and 45,379 levels on the higher side, primarily because of the symmetrical triangle breakout. At the same time, 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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