Choppy Session in Play!
THE BTC/USD was closed at $57,477 after placing a high of $57,477 and a low of $52,960. Bitcoin reversed its course on Wednesday and recovered all of its previous day’s losses. The latest Bitcoin rally came in after a crypto custody firm NYDIG said that customers of some U.S. banks would soon be able to buy, hold and sell bitcoin through their existing accounts. The company, a subsidiary of $10 billion New York-based manager Stone Ridge, partnered with fintech giant Fidelity National Information Services to enable U.S. banks to offer bitcoin in the coming months.
According to the head of solutions at NYDIG, hundreds of banks were already enrolled in the program. While the firm is in discussions with some of the biggest U.S. banks, many lenders who have agreed to participate were small institutions. The news that U.S. banks will allow their customers to buy Bitcoin with their existing accounts depicted a significant success for cryptocurrency that ultimately pushed Bitcoin prices higher above $57,000.
Meanwhile, Bitcoin gains were further supported by the rising popularity in Argentina due to the economic crisis. According to the head of Binance in Latin America, the number of active crypto trading accounts has surged by 1000% since last year in Argentina. Residents of the country were seeking ways to offset massive inflation that led them to Bitcoin and other cryptocurrencies.
Rising double-digit inflation levels have badly hit Argentina for the past three years. The nation’s currency, Peso, has been on a downward spiral as its economy has been in recession since 2018 while its GDP dropped by roughly 10% last year. The jump on Bitcoin as a store of value has raised the popularity of bitcoin in Argentina to massive levels that added strength in BTC/USD.
The CEO of JP Morgan, Jamie Dimon, has reaffirmed his stance on bitcoin while acknowledging that his bank’s clients were interested in cryptocurrency. He said that he was not a bitcoin supporter and did not care about the coin and had no interest in it, but he acknowledged that his clients were very interested.
BTC/USD Intraday Technical Levels
Pivot Point: 55971.3
BTC/USD - Technical Outlook
The BTC/USD is trading at 56,887 level, having violated the sideways trading range of 52,255 – 56,452. Currently, the BTC/USD pair is holding above a support level of 56,220 level. The 20 and 50 periods EMA (Exponential Moving Averages) support an upward trend, and these can underpin the Bitcoin price around 56,220 and 55,850 level. On the 4 hour timeframe, the BTC/USD pair has closed a symmetrical triangle pattern that’s suggesting indecision among investors. Typically such patterns drive sharp breakouts in the market. Above resistance level of 57,620, the pair’s next resistance stays at 59,000. The leading indicators demonstrate a solid bullish bias as the RSI and MACD has crossed over into the buying zone. The BTC/USD pair’s support stays at 56,335 levels. Below these levels, the BTC next support holds around 53,736. Conversely, the violation of 57,650 resistance exposes Bitcoin towards resistance areas of 59,966. All the best!
JOIN LONGHORNFX TODAY
24/7 live support, lightning fast withdrawals, guaranteed safe and reliable trading platforms with a true ECN broker.