Bitcoin Comes Under Massive Selling Pressure
The BTC/USD was closed at $33092.8 after placing a high of $38248.7 and a low of $31192.4. Bitcoin extended its gains over the weekend and fell below the $32,000 level. The crypto king trading at $64,000 a month ago had dropped more than 50% to below the $32,000 level this week following the news that Elon Musk has ended all bitcoin payments through Tesla considering the environmental effect. Even news came out that he was taking into account ending all his BTC holdings.
After this news, the whole crypto market saw a massive crash in prices, and the world’s largest cryptocurrency by market cap dropped more than 50% within a month. Furthermore, the declining trend accelerated after JP Morgan issued a report suggesting that many institutional players with a serious interest in bitcoin and other digital assets were now abandoning cryptos to favour gold-related investments. Since then, the yellow metal has skyrocketed and rose to a price of approximately $1900 per ounce.
Another reason behind the recent bitcoin crash could be the latest notice from China to limit the power consumption in industrial areas where many bitcoin mining facilities operate. On Friday, the State Council of China issued a statement aimed explicitly at all operations located in the government-sanctioned industrial zones to limit power consumption. This notice worked as a negative pressure over cryptocurrency space because it will affect the BTC mining and trading and dragged the BTC/USD prices further.
Moreover, Greenpeace, the ecological NGO, reported having stopped accepting bitcoin donations amid the massive impact the digital asset network has on the environment. Greenpeace was one of the first NGOs to add bitcoin to its donations fund, and the recent U-turn to withdraw Bitcoin from its fund due to increased energy consumption added pressure on BTC/USD prices.
The cryptocurrency market was under pressure from back-to-back negative news this week and dragged Bitcoin prices lower, changing the whole market mood to bearish. BTC/USD also remained weak due to rising prices of the U.S. dollar on Friday; the DXY rose and posted gains for the day and reached above 90 level that added further pressure on declining bitcoin.
BTC/USD Intraday Technical Levels
Pivot point: 37465.7
BTC/USD - Technical Outlook
The leading cryptocurrency BTC/USD continues trading sharply bearish amid a series of fundamentals playing against crypto pairs. The BTC/USD pair is gaining support at 33,600 area, and it has closed a solid bullish candle above this level. This suggests sellers are getting exhausted, and buyers are bracing to enter the market. The Fibonacci indicator suggests resistance around 38.2% Fibo level of 36,700 and 61.8% retracement level 38,580. The pair’s support holds at 33,500 and 31,850. The 20 and 50 periods EMA (Exponential Moving Averages) support a selling trend; therefore, the selling power stays strong over these trading levels. All the best!
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