Sideways Range Breakout!
The BTC/USD was closed at $57,637 after placing a high of $57,637 and a low of $53,339. Bitcoin rose on Friday and reversed its course after the U.S. started creating Bitcoin regulations to fight ransomware attacks. The United States's government and the private sector were creating new Bitcoin regulations that have plans to combat cryptocurrency as payment for ransomware attacks. The new bitcoin regulation will also collude with the FBI, Secret Service, and tech and security companies.
This group of organizations will help others form effective regulations against the abuse of bitcoin in cyberwar attacks. Another news that pushed bitcoin prices higher was from the cryptocurrency exchange, ShapeShift. The cryptocurrency exchange announced that it had enabled cross-chain swaps via THORchain and Ethereum based DEX trading. These new functions have made ShapeShift the first cryptocurrency exchange to allow BTC and ETH trades on hardware wallets.
A publicly registered company that produces business analytics and one of the most prominent institutional investors into Bitcoin, MicroStrategy has recently announced that its holdings of bitcoin have reached 91,000 BTC worth $5 billion. According to the financial reports released by the firm for the 1st quarter of 2021, the CEO of the company, Michael J. Saylor, noted that the firm has around 91,579 Bitcoins, and the firm has raised over $1 billion, that was invested by increasing its bitcoin holdings.
The number of companies and businesses receiving bitcoin and other crypto-assets as a payment method has been developing faster. The food sector has also not been left behind as Muscle Maker Grill and numerous chain restaurants operated by one parent company, Landry's, have also announced Bitcoin payments.
The Chairman and CEO of the food chain Landry's Inc., Tilman Fertitta, announced that most of the restaurant chain's brands would accept bitcoin payments soon, which means Americans who hold bitcoin will be able to purchase food from different US-based food chain restaurants.
Furthermore, China might be making plans towards increasing regulations in crypto mining as worries about the results of bitcoin mining on the carbon footprint raised.
It is reported that crypto miners from China may be looking towards strict supervision when mining in the future. This came in after the government was allegedly concerned over the high amounts of energy consumed during bitcoin mining. All the above-market updates favored bitcoin prices and pushed them higher above $57,000 on Friday.
BTC/USD Intraday Technical Levels
Pivot Point: 57766
BTC/USD - Technical Outlook
Technically, the BTC/USD pair has violated the sideways trading range of 52,255 – 56,452. Violation of this level is exposing Bitcoin prices towards the next resistance area of 59,960 level. The 20 and 50 periods EMA (Exponential Moving Averages) support a buying trend; therefore, the bull power stays strong. On the 4 hour timeframe, the BTC/USD pair has also completed 38.2% Fibonacci correction at 56,450. Above this, the pair’s next resistance stays at 59,996. The leading indicators are holding in the bullish zone, suggesting buying trend in Bitcoin. The BTC/USD pair’s support stay at 56,450 and 53,335 levels. Below these levels, the BTC next support holds around 47,736. Conversely, the violation of 59,966 resistance exposes Bitcoin towards resistance areas of 62,800. All the best!
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