Double Bottom Breakout, Upward Channel Support
The BTC/USD was closed at $35631.0 after placing a high of $35966.0 and a low of $33725.0. Bitcoin continued its decline for the 6th consecutive session and reached below the $34000 level on Sunday amid various negative developments around the market. A professor of economics from Cornell University and former head of the IMF’s China division, Eswar Prasad, entails three significant flaws in bitcoin. According to Prasad, these flaws drive people in search of better alternatives. The first flaw he mentioned was the high energy consumption in bitcoin mining which is harmful to the environment. He said that Ethereum was working on a project that will enable it to use less energy.
The second flaw noted by Prasad was that bitcoin was not so anonymous, and other cryptocurrencies like Monero and zcash offered more anonymity than bitcoin. Finally, the third flaw he explained was that bitcoin could not work well as a currency as its transactions were slow and cumbersome for payment use. Finally, he added that bitcoin had become a speculative asset due to its highly volatile nature. These comments from Prasad added pressure on BTC/USD.
In addition, the NCB announced that it had arrested a suspect who allegedly exchanged bitcoin for LSD and was later identified as Crypto King. Furthermore, a 63-year old retired British teacher, Teresa Jackson, has said that she has lost her life savings worth 120 K pounds to the bitcoin scam in a fake Bitcoin investment scheme. She said that the lost funds were the collective amount of her life savings and pension funds. She explained that the scam appeared in an ad on Instagram and said that a stranger contacted her as a financial investor soon after she found the ad on Instagram.
The crypto scammer convinced her to stake 120,000 pounds, and she transferred the cash directly to him after feeling confident by the knowledge and trustworthy nature of the scammer. After transferring the amount, she tried to contact the person but got no answer and lost all of her life savings. This scam also added to the negative side of bitcoin that dragged BTC/USD further on the downside. On the flip side, Goldman Sachs has debuted a Bitcoin futures trading product in collaboration with crypto investment giant Galaxy Digital to offer to its clients.
One of the wealthiest Russians, Oleg Deripaska, blamed the Bank of Russia for its strict regulations imposed on digital assets. He said that the central bank prohibits the citizens from investing in cryptocurrencies like Bitcoin and asked the country to add the primary cryptocurrency as a payment method. He also gave an example with the Latin country of El Salvador that has already laid the foundations for making bitcoin legal tender.
BTC/USD Intraday Technical Levels
Support Resistance
34248.6 36489.6
32866.3 37348.3
32007.6 38730.6
Pivot Point: 35107.3
BTC/USD - Technical Outlook
On Monday, the BTC/USD pair plunged dramatically from 35,246 level to trade at 33,122 level. On the 4-hour timeframe, bitcoin has disrupted the support level of 35,246, which is now working as a resistance level. Furthermore, Bitcoin is supported by an upward channel on the 4-hour timeframe. The pair is gaining support at the triple bottom support level of 31,170 level, whereas the violation of 31,170 level can expose the pair towards the next support level of 29,562 level. The leading technical tool MACD is supporting a selling bias in Bitcoin. Likewise, the 50 periods EMA is also supporting a selling trend. Bearish bias continues to dominate the market. All the best!
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