Bitcoin Takes a Nosedive!
The BTC/USD is currently trading at $44012.0 and is on the course for another bearish day. Bitcoin has been declining continuously since12th May. BTC/USD tried to recover its previous daily losses but failed and remained flat for the day. The latest decline in Bitcoin prices was due to a recent tweet from CEO of Tesla Elon Musk that implied that the electric vehicle maker has sold or may sell the rest of its bitcoin holdings. Musk has been a big-time supporter of cryptocurrencies and has also helped digital coins, including bitcoin, to surge many times in the past year.
In February, Tesla revealed that it bought $1.5 billion worth of bitcoin. The company later said that it registered a net gain of $101 million from sales of bitcoin during the quarter and boosted the company's net profit to a record high in the first quarter. Another reason behind the declining prices of Bitcoin was the latest statement from the CFO of Square, Amrita Ahuja, that the company has no plans to purchase more bitcoin. This statement came in after Elon Musk's announcement that Tesla would no longer accept BTC.
Square, alongside Tesla and MicroStrategy, is among the top tech companies who have been supporters of bitcoin holdings as a hedge against economic inflation. A negative statement from such a company related to Bitcoin added pressure on BTC/USD prices and dragged it below the $45,000 level. On Monday, Bitcoin prices dropped to a three-month lowest level as investors started selling crypto coins in the wake of the latest hinting from Elon Musk that he was considering or may have already sold some of its bitcoin holdings.
Furthermore, the declining pressure among cryptocurrencies, especially Bitcoin, was raised over the weekend after Financial journalist Edward Chancellor predicted that launching central bank digital currencies could be catastrophic for Bitcoin. Many central banks of numerous leading economies like China, Japan, and the U.S. are moving forward and researching the option of launching their digital currency. According to Edward, the projects of central bank digital currencies are hazardous and could lead to the destruction of bitcoin.
BTC/USD Intraday Technical Levels
Support Resistance
44795.2 48915.2
43007.6 51247.6
40675.2 53035.2
Pivot Point: 47127.6
BTC/USD - Technical Outlook
The BTC/USD pair is trading sharply bearish at 44,971 level, having dropped from 49,800 high to the low level of 42,029. On the 4-hour timeframe, Bitcoin has formed a bearish channel that's supporting strong selling bias among investors. However, the channel is extending support at 42,900 area. Closing of candles above this level makes it more robust support, and BTC is exhibiting a bullish correction above 42,900 support. The leading crypto pair's next resistance stays at 45,500 and 47,510 levels. At the same time, a bullish breakout of 47,510 level exposes the pair towards the 49,300 mark. Considering the leading indicators such as RSI and MACD, bearish bias dominates Bitcoin today. All the best!
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