38.2% Fibonacci Extending Resistance!
The BTC/USD was closed at $40578.0 after placing a high of $41827.0 and a low of $35198.4. After declining for eight consecutive sessions, Bitcoin held some ground at $35,000 and pulled back on Thursday. Bitcoin started its upward momentum after continuously falling for more than a week on the back of much favorable news in circulation. Retail traders have turned their attention to the cryptocurrency space due to the latest developments in the market. According to Google trends data, the number of cryptocurrency searches has skyrocketed t new all-time high levels.
The queries varied from environmental issues related to cryptos to investors should sell cryptos. On Thursday, Google trends highlighted the massive surge in online searches for cryptocurrency and demonstrated through a graph that the search "should I sell my crypto" in the U.S. alone surged by 400% on the last day. The rising interest of retail investors in cryptocurrency added in the leading currency – Bitcoin, and lifted its prices on Thursday.
Furthermore, the American Investor and Hedge fund manager Bill Miller also backed up the leading cryptocurrency after its recent price collapse and said that Bitcoin was safe. He was confident that bitcoin would go back to its previous position as the decline was normal. It also added strength to the rising prices of Bitcoin.
The Nobel-prize-winning economist Paul Krugman who was previously known for being a crypto-skeptic is now appeared to have altered his 2008 views and admitted that flaws and all, Bitcoin was here to stay.
Meanwhile, the CEO and founder of Tron, Justin Sun, was reported to add to his bitcoin stash in an attempt to take a chance to buy the dip in the hope that prices will rise again soon. Sun announced that he had bought 4145 Bitcoin worth more than $150 million on Thursday at an average price f $36,800.
The University of Pennsylvania announced that the school had received a new anonymous donation of $5 million in bitcoin. It was the largest cryptocurrency gift the University has ever received. On the flip side, the Bank of Canada said that price volatility kept crypto assets from being widely accepted as means of payment. The Bank said that it has been monitoring crypto-asset markets as they surged in popularity last year due to easier access through ETFs, listed companies, and other investment vehicles. However, despite broadening interest, cryptocurrencies remain highly risky due to their intrinsic value was hard to establish, and people are hesitant to accept them as means of payment.
Furthermore, the U.S. Treasury said that the cryptocurrencies pose a significant tax-evasion risk and have outlined its plan to raise $700 billion over the next decade to help fund President Biden's ambitious American Families Plan through new tax enforcement measures. This plan will require that any crypto transfer over $10K be reported to the IRS; after this report, bitcoin lost some of its daily gains.
BTC/USD Intraday Technical Levels
Support Resistance
36575.2 43203.8
32572.5 45829.7
29946.6 49832.4
Pivot point: 39201.1
BTC/USD - Technical Outlook
The BTC/USD has recovered from a low level of 28,212 on Thursday. The leading crypto pair BTC/USD has already completed 38.2% Fibonacci retracement at 40,215 level, and now it's closing Doji candles below the same level. Bitcoin's immediate resistance stays at 40,215 level that marks 38.2% Fibo levels, and above this next resistances stays at 43,999 and 47,740 levels. At the same time, support holds around 36,480 and 32,350 levels today. Bitcoin remains below 20 and 50 periods EMA levels that place a bearish pressure on BTC/USD pair. Bearish bias seems stronger in 43,150 zones. All the best!
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