Triple Bottom Bounce-Off – What's Next?
The BTC/USD was closed at $32,553 after placing a high of $33,300 and a low of $29,927. Bitcoin prolonged its decline and dropped below $30,000 on Tuesday. However, it managed to recover a minor portion of its losses and reversed its track. Bitcoin fell to its lowest since the mid-January level on Tuesday but managed to remain green after declining consecutively for seven days amid various positive developments surrounding the cryptocurrency environment.
The CEO of the giant investment manager, VanEck, Jan van Eck, has reiterated that his firm's customers showed a growing demand for a Bitcoin ETF. He recently unveiled plans of his firm entering the cryptocurrency space through an ETF that tracks the performance of Bitcoin. The firm has already filed for a few ETFs, but the decision is still pending from the U.S. Securities and Exchange Commission. VanEck filed another draft prospectus for a BTC futures mutual fund earlier this week and has said that the demand for such a product was very high.
Meanwhile, the second-largest bank in Spain, BBVA, has recently joined the growing list of institutions that now offer one or other bitcoin products. In a recent press release, BBVA has disclosed that it has launched a crypto trading app for private customers in Switzerland. The official statement revealed that after a trial period of 6 months, the crypto trading service went live on June 21.
This launch by the bank has enabled its clients with direct exposure to Bitcoin. Furthermore, the users can also convert their bitcoin into fiat currencies like EUR or USD. On the other hand, Miami is trying to become the next hub of crypto mining as China has shown consistency with its efforts to crush Bitcoin mining and trading. The Mayor of the city, Francis Saurez, has disclosed that he was working to lower the cost of electricity to attract more BTC miners to the region. He added that he was ready to explore the region's cheap nuclear energy to ensure that the opportunity can be availed.
Another important factor involved in the rising prices of Bitcoin on Tuesday was the reversal in the U.S. dollar. The U.S. Dollar Index (DXY) that measures the greenback value against the basket of six major currencies, fell to 91.6 level and pushed BTC/USD higher. The greenback was weak across the board amid the declining U.S. Treasury Yield that also fell below 1.50% and added further gains in BTC/USD, and both the U.S. dollar and BTC share a negative correlation.
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
The BTC/USD fell to test the previously mentioned support area of 29,562 level, and now it's trading at 33,913 level. On the daily timeframe, the BTC/USD pair has closed a Doji candle over 29,562 level that demonstrates the weakness in the bearish power, and bulls seem to take over the market. However, we can see that the upward channel is still intact as the BTC/USD pair has bounced off to trade over 32K levels. With this, the BTC/USD price can face resistance around 36,665 level today or in upcoming days. At the same time, the violation of the 36,665 level exposes Bitcoin price towards 40,913 level. Elsewhere, the support level continues to stay at 32,000 and 29,562 levels today. All the best!
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