Bitcoin Complete 23.6% Fibonacci Correction
The BTC/USD was closed at $35,895.9 after placing a high of $36,411.0 and a low of $34,316.7. Bitcoin rose on Tuesday and peaked since June 18 despite the strong comeback in the U.S. dollar. On Tuesday, U.S. Senator Cynthia Lummis suggested Americans consider cryptocurrency as a way to diversify their retirement and long-term savings as she was also doing the same. She revealed that she was holding about five BTC and the first bitcoin she ever purchased was about $330. Lummis encouraged people to buy and hold bitcoin and other cryptocurrencies as savings for their future.
Cynthia Lummis suggested people save their retirement money in bitcoin as it was one of the strongest stores of value for the long run. She said that having retirement money denominated in the U.S. dollar is something to worry about as asset allocation should be diversified. Furthermore, Robert Kiyosaki, the highly successful author of the “Rich Dad Poor Dad” series of personal finance books, has recommended buying bitcoin, gold, and silver ahead of what he believes to be going the biggest crash in world history.
In a tweet, Kiyosaki said that the next market crash would be a long one, but he also noted that the best time to get rich was during a crash. He suggested his followers get more hold of gold, bitcoin, and silver if they can to stay ahead of the financial downturn. Kiyosaki has been forecasting a market crash for a while now. In December 2020, he revealed that he was glad that he bought BTC at $19,000 as he accurately predicted that a wall of institutional money was coming in 2021, and then BTC reached $55,000. After few months, bitcoin hit a new all-time high at $64,000 before crashing down to $30,000, and it has been subsequently recovering.
On the other hand, Cathie Wood’s Ark Investment Management was confident that it might get approval from the SEC and joined the list of growing companies seeking to launch a bitcoin exchange-traded fund. The SEC revealed that Ark Invest has teamed up with European exchange-traded product issuer 21 Shares to apply for a Bitcoin product.
Moreover, the U.S. Dollar Index that measures the greenback value against the basket of six major currencies rose on Tuesday and reached above 92 handles, that added strength to the U.S. dollar. The rising prices of the greenback could be attributed to the fresh risk-off market sentiment driven by the fears of a new wave of the coronavirus pandemic that was accelerated by the highly contagious Delta variant of the virus.
Meanwhile, the U.S. dollar was also strong because of the latest hawkish tone portrayed by the Federal Reserve in its policy meeting. The strength in the U.S. dollar on Tuesday kept a cap on the gains of BTC/USD.
BTC/USD Intraday Technical Levels
Support Resistance
34671.4 36765.7
33446.9 37635.5
32577.1 38860.1
Pivot Point: 35541.2
BTC/USD - Technical Outlook
The BTC/USD pair is trading with a bullish bias at 34,958 level, dropping after testing the strong resistance area of 36,665. The BTC/USD has completed 23.6% Fibonacci retracement daily, and the closing of candles below this level supports selling bias in Bitcoin. The 50 periods EMA extends resistance at 37,648 level while the MACD is still holding below 0 levels, demonstrating bearish bias among investors. On the higher side, the breakout of 36,665 level can expose Bitcoin price towards 37,650 and 40,930 (38.2% Fibonacci Retracement) level. All the best!
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