20 & 50 EMA Crossover!
The BTC/USD was closed at $38363.0 after placing a high of $39761.0 and a low of $36760.5. Bitcoin reached near $40,000 on Tuesday amid a combination of factors. Institutional investors and retail traders that wanted to trade in bitcoin but could not afford its high prices were now entering the market, and this was driving its prices higher once again. The recent decline in bitcoin prices has encouraged many investors who were waiting for it to come lower to gain the opportunity of entering the market. For instance, an asset management company Ark Investment Management, led by Cathie Wood, availed the chance and bought about $20 million worth of bitcoin as its prices have declined.
The company filed with the U.S. Securities and Exchange Commission that it has purchased about $19,872,939 worth in bitcoin; however, it did not reveal the specific time of the investment. This decision by Ark to buy the dip might encourage other investors and institutions that had plans to do the same and could increase the prices of bitcoin.
On Tuesday, the influential CEOs Elon Musk and Michael Saylor announced that they held a meeting between bitcoin mining firms based in North America and developed a plan to launch a group named “Bitcoin Mining Council.” The council will provide transparency around the types of energy used in practice and push it towards more renewable sources.
In addition, Dubai-based Freezone DMCC launched its new Crypto Centre to support businesses operating in the cryptographic and blockchain sectors. The DMCC Crypto Centre is located in Almas Tower, and it offers co-working space for all types and sizes of crypto businesses. It supports companies from developing blockchain-enabled trading platforms to companies offering, issuing, listing, and trading crypto assets. This news also added strength to bitcoin prices on Tuesday.
Bitcoin also surged on Tuesday amid a report showing a study by activist group Greenpeace and WWF that bitcoin mining was terrible for the environment. Still, the banks pollute way more than bitcoin by financing destructive industries.
The report suggested that British banks were responsible for supporting projects that emitted 805m tonnes of CO2 in 2019. The UK is a significant contributor to climate change, and it is ranked in the top 20 most populating countries with 370 billion metric tonnes of CO2 emission. China and the United States top the list by a wide margin. This report also favored the bitcoin and pushed its prices near $40,000.
BTC/USD Intraday Technical Levels
Support Resistance
36828.6 39829.1
35294.3 41295.3
33828.1 42829.6
Pivot Point: 38294.8
BTC/USD - Technical Outlook
The BTC/USD has recovered from a low level of 37,572 level, and now it’s trading at 40,387 level. On the 4-hour timeframe, the BTC/USD pair has completed 23.6% Fibonacci retracement at 37,572 level, and now it’s heading towards the next resistance area of 41,896. The 38.2% Fibonacci correction level is extending the level. The bullish bias remains vital for BTC/USD, especially over the 38,294 pivot point level, as this level will also be working as support now. Lastly, the 20 & 50 periods EMA are also in support of a bullish trend today. All the best!
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