Bearish Correction in Bitcoin!
The BTC/USD closed at $57,147 after placing a high of $58.686 and a low of $56,605. BTC/USD rose to its higher since 18th April on Monday but could not live there for long and started losing its daily gains. However, the cryptocurrency managed to close its day with little gains after 2-days of losses. Bitcoin rose on Monday after the executive chair and founder of one of the largest crypto mining firms in North America, Darin Feinstein, said that the firm has plans to make the U.S. a global leader in making blockchain technology mainstream.
The firm said that it has acquired an additional 8000 rigs and has begun mining other cryptocurrencies. On Monday, the mining firm said that it planned to have more than 50,000 mining rigs online by the end of 2022. Moreover, the CEO of Binance, Changpeng Zhao, has commented on the volatility of Bitcoin that also added in the value of BTC/USD. Zhao said that the largest crypto by market capitalization was probably less volatile than the stock prices of similarly sized companies by market cap such as Apple and Tesla. According to data from Woolbull, the 60-day volatility in Bitcoin has steadily declined since the start of 2021.
Furthermore, the Hollywood start Mila Kunis has revealed that she invested in Bitcoin eight years ago with her husband, Ashton Kutcher. She said that she was not confident in bitcoin at first, but now she was happy that she made the right choice. These comments from Mila added to the popularity of Bitcoin and supported BTC/USD on Monday.
The Middle East is a crucial sector for finance, fintech, and cryptocurrencies. The largest crypto exchange in the region, named Burency, aims to make cryptocurrencies more appealing and accessible by focusing on many different aspects. The rising interest of investors and competition from more firms entering the space encouraged Burency to expand the business. Burency has thus announced that soon the Middle East will have its crypto-whales. This news also supported Bitcoin prices as it indicated growth in the cryptocurrency industry.
BTC/USD Intraday Technical Levels
Pivot Point: 57479.3
BTC/USD – Technical Outlook
The leading cryptocurrency BTC/USD pair has violated the sideways trading range of 52,255 – 56,452 to place a high around 58,668 level but soon fell back to trade the same trading range. Currently, the BTC/USD pair is holding in above a support level of 55,050 level. The 20 and 50 periods EMA (Exponential Moving Averages) support a buying trend; therefore, the bull power stays strong over these trading levels. 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 56,450. The leading indicators are mixed as the RSI suggests a selling trend, while the MACD is still holding above 0, supporting a bullish bias. So we can conclude there’s a neutral bias in the market, and Bitcoin will be trading as per the support and resistance levels. The BTC/USD pair’s support stays at 53,335 levels. Below these levels, the BTC next support holds around 47,736. Conversely, the violation of 56,450 resistance exposes Bitcoin towards resistance areas of 59,966. All the best!