20 & 50 EMA Crossover!
The BTC/USD was closed at $39301.0 after placing a high of $40497.8 and a low of $38020.2. Bitcoin rose on Wednesday after the head of blockchain and cryptocurrency at PayPal, Jose Fernandez da Ponte, said that the online payments giant would be adding support for transfers of bitcoin off of the platform and to third–party wallets. According to PayPal, they want to make it as open as possible. However, they did not reveal that when exactly the feature will be added.
Furthermore, the chief investment officer of Guggenheim, Scott Minerd, has predicted that there will be more sell-off in bitcoin. He also warned that it would take a while for the digital asset to return to its previous highs. However, for the long-term, Minerd has predicted that bitcoin’s price could rise to $600k.
According to a Wall Street analyst, Tom Lee, bitcoin’s nature is hyper volatile and creates a reward for people. He added that even though bitcoin was in the penalty box, it could still exit the year over $100,000. Moreover, the latest big name in billionaire investors to have an eye on crypto is the legendary Carl Icahn, who said that his firm might get into crypto in a relatively big way. The billionaire investor and founder of Icahn Enterprises said that he does not hold any crypto assets personally. Still, his firm might get involved in a relatively big way as crypto was here to stay in one form or another. After this news, bitcoin saw an impulsive buying, and BTC/USD started rising in value and reached above $40,000.
On the other hand, the officials within the Biden administration were reportedly studying the gaps in cryptocurrency regulations following the latest session of volatility in the market. This sent signals that new rules could soon be proposed.
The White House officials were studying whether digital assets like Bitcoin could be used to finance terrorist activities. They were also investigating whether retail investors should be protected from the extreme price fluctuations of digital asset markets. This report also added strength to bitcoin prices on Wednesday.
BTC/USD Intraday Technical Levels
Pivot Point: 39273.0
BTC/USD - Technical Outlook
The BTC/USD has plunged from recovered from 40,387 level to trade around 38,572 level. On the 4-hour timeframe, the BTC/USD pair has completed 23.6% Fibonacci retracement at 37,572 level and 38.2% retracement at 41,896. For now, it’s trading below 38.2% Fibonacci correction level as it’s extending resistance at 40,415. The bullish bias seems to get weaker for BTC/USD, especially below the 39,9273 pivot point level, as this level will also be working as resistance now. Lastly, the 20 & 50 periods EMA are also in support of a bearish trend today. All the best!
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