50 EMA & Downward Trendline Pressures Bitcoin!
The BTC/USD was closed at $34656.6 after placing a high of $35137.2 and a low of $32530.0. Bitcoin extended its rally for the third consecutive session and moved higher above the $35,000 level on Thursday. The latest news that encouraged the upward momentum in bitcoin was that Brazil had become the second country inside America to launch a bitcoin exchange-traded fund. The Securities and Exchange Commission of Brazil authorized QR Capital's bitcoin ETF to begin trading on the Sao Paulo-based B3 exchange. This news added strength to the already increasing prices of BTC/USD on Thursday.
On the other hand, the U.S. Securities and Exchange Commission has still not approved a bitcoin exchange-traded fund as it recently delayed its rulings for the second time on VanEck. The global reach of cryptocurrencies extends with exchange-traded funds in Canada and Brazil, while the United States is struggling with deciding in favor of ETFs.
Meanwhile, according to a report on Bloomberg, the Winklevoss twins, including Tyler and Cameron Winklevoss, acquired $4 Million in carbon credits through the cryptocurrency exchange they founded, Gemini. The purchase was made to counterbalance the bitcoin held in custody at the exchange. This came in after Tesla CEO Elon Musk highlighted bitcoin's carbon footprint in May, triggering a bearish trend in the whole crypto market.
On the other hand, the President of El Salvador, Nayib Bukele, defended and explained the Bitcoin law. Some analysts say that he explained the law in a way that left a little doubt behind; however, some analysts praised it and said that the law was thorough and was made while keeping in mind all kinds of people, including people without bank accounts.
Furthermore, the New York Digital Investment Group has announced its partnership with Q2, and a firm specialized in providing digital services to financial institutions. The partnership was made to provide access to bitcoin for bank holders in the United States. The partnership will potentially provide services including buying, selling, and holding of bitcoin to about 18.3 million bank customers in America.
Additionally, the American University of Paraguay said that it will now accept payments in bitcoin and other cryptocurrencies from August 1, 2021. The university is one of the most prestigious educational centers and has been in operation for over 30 years. The university did not reveal the technical background of accepting and holding the payments, but the university said it would accept cryptocurrency payments, including bitcoin. This news also added to the strength of the BTC/USD on Thursday.
BTC/USD Intraday Technical Levels
Support Resistance
33078.6 35685.8
31500.7 36715.1
30471.4 38293.0
Pivot Point: 34107.9
BTC/USD - Technical Outlook
The BTC/USD pair has soared to 34,112 level, having bounced off the support level of 32,495. On the 4 hour timeframe, the downward trendline is extending resistance at 35,290 level. It's the same level that's being extended by the 50 periods EMA, and the closing of Doji candles is supporting odds of bearish bias. Today, the investor's focus will be on an immediate resistance area of 35,290, as this bearish bias seems strong. On the downside, the support stays at 32,495 areas, and a bearish breakout can expose BTC towards a 29,562 level. The MACD is holding right below 0 marks, and traders will be keeping an eye on it for a crossover. In case of a bullish crossover, the BTC/USD's next resistance stays at 36,665 and 38,765. All the best!
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