Triple Bottom Pattern Continue to Support
The BTC/USD was closed at $33708.0 after placing a high of $34196.0 and a low of $32553.0. Bitcoin extended its gains on Wednesday and reached near $35,000 level as U.S. Senator Cynthia Lummis said that she was excited about the low prices of bitcoin and was planning to buy the dip. She added that as soon as bitcoin prices drop more, she will proceed with more buying as she has believed that bitcoin was a great store of value. Lummis also affirmed that she wanted a regulation for bitcoin as it will provide her with a level playing field. She also said that the rules should be simple and easy to understand for digital assets and cryptocurrencies. She added that the regulations should not be overly restrictive because she wanted to see increased innovation in the cryptocurrency space. These comments added strength in BTC/USD and pushed it further upward.
Meanwhile, El Salvador was determined to push ahead with making bitcoin a legal tender. The country's President Nayib Bukele said that making bitcoin a legal tender is a process that will bring only small risks but will also prove a leap forward for humanity. He was excited that this move would boost jobs and economic development in the Central American country.
Despite the World Bank declining to offer technical support and the concerns raised by IMF, Bukele said that he was confident that the project would be a success. He also called the process bulletproof. These comments from Bukele also added gains in BTC/USD. Moreover, the CEO of Binance, Changpeng Zhao, reminded everyone not to panic sell their digital assets and cryptocurrency holdings as the prices were declining. He elaborated that 99% of the time market remains dip, yet some people complain about the lack of opportunity to join the crypto community. Some say that they were a little too late for grabbing the opportunity now.
Zhao further explained that investors should learn from past mistakes and suggested that everyone keep it in writing with himself that panic-sell was terrible, to remind himself to calm down during any market crash. He warned everyone to structure risks that will prevent another sell-off out of panic. These comments from Zhao gave relief and supported BTC/USD on Wednesday. Furthermore, the CEO of Galaxy Digital, Michael Novogratz, expressed another positive prediction for the future of the primary digital asset – Bitcoin. He said that he still looks at bitcoin as the better version of gold despite the recent market crash. The Billionaire and most prominent bitcoin bull disregarded the current collapse in the crypto market and said that bitcoin and altcoins represent the future of the financial world. These positive comments from the CEO of Galaxy Digital added strength in BTC/USD on Wednesday.
Meanwhile, the U.S. Dollar Index that measures the greenback value against the basket of six major currencies rose slightly on Wednesday and placed minor gains that kept BTC/USD under pressure and kept its upward momentum limited as both share a negative correlation. The DXY remained steady near the 91.80 level and determined the rising prices of BTC/USD.
BTC/USD Intraday Technical Levels
Support Resistance
32772.0 34415.0
31841.0 35127.0
31129.0 36058.0
Pivot Point: 33484.0
BTC/USD - Technical Outlook
On the technical front, Bitcoin is following the same technical levels as we discussed yesterday. The BTC/USD continues to trade at the 33,013 range, having formed series of spinning top and Doji candles over 29,562 level that demonstrates the weakness in the bearish trend. Therefore, the pair is taking a slight bullish correction for now. On the higher side, the BTC/USD pair's resistance stays at 36,665 level that's being extended by 23.6% Fibonacci retracement level. At the same time, a bullish crossover of this level exposes the pair towards the next resistance area of 40,913 level. The support level continues to stay at 32,000 and 29,562 levels today. All the best!
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