Bitcoin Price Prediction
The BTC/USD closed at $63,562.0 after setting a high of $66,320.0 and a low of $63,383.3. On Monday, BTC/USD reversed its movement and dropped amid some negative developments surrounding the cryptocurrency market. Recently, the US SEC rejected the proposal by VanEck for a bitcoin exchange-traded fund that would have held actual currencies rather than just bitcoin futures.
The proposal was submitted in March, according to which the VanEck plan sought to purchase Bitcoin directly on the spot market and keep it in an ETF that investors could then have a stake in. A future-based ETF invests in an indirect contract to buy or sell an asset at a set date in the future. The SEC rejected this proposal on concerns about investor protection, and this news added a negative impression on BTC/USD.
Furthermore, a robbery of a Bitcoin ATM was carried out by a group of hooded youths in one of the wealthiest neighborhoods in Barcelona, Spain, on Friday. Spanish police were investigating the theft of a Bitcoin ATM, which was witnessed by many people who reported the incident on their cell phones. This was the first time a Bitcoin ATM was robbed in this way in Spain. This news added a further negative impression on BTC/USD and dragged its prices to the downside.
Additionally, Dutch authorities seized over 25 million euros worth of Bitcoin, Ethereum, and other cryptocurrencies due to alleged criminal activity. According to the Chain analysis 2021 report, the volume of illicit crypto activity in 2019 represented a small 2.1% of all transactions, and in 2020 that volume fell to 0.34%. However, the expectations for cybercriminal use of DeFi for money laundering increased by 2021.
Regulatory authorities increasingly encounter cryptocurrencies in forms of crime such as drug and human trafficking, fraud, and tax evasion. This news also added a further loss in leading cryptocurrency prices, BTC/USD, on Monday.
Meanwhile, rising US dollar prices on Monday added further downward pressure on BTC/USD, as the US Dollar Index (DXY) reached 95.60 amid higher US Treasury Yields for the day. The US Treasury yields on the benchmark 10-year note surged to 1.63% and gave strength to the US dollar, which ultimately added a negative impression on BTC/USD as both have a negative correlation.
BTC/USD Intraday Technical Levels
Pivot Point: 64843.7
BTC/USD - Technical Outlook
On Tuesday, the BTC/USD continued to trade with a sharp bearish bias at the 60,158 level. It has violated the upward trendline at the 63,300 level and the closing of candles below this level supports a strong selling trend in BTC.
The breakout of 63,330 support level is exposing the BTC/USD coin towards next support level of 59,687 level. Below this, 58,510 level will be working as next support. The major resistance levels will stay at 62,630 and 64,438 levels. The bearish bias dominates below 62,630 and vice versa. All the best!
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