Bitcoin Price Prediction
The BTC/USD was closed at $57,209.0 after reaching a high of $57,762.0 and a low of $55,916.9. The BTC/USD dropped on Wednesday amid the strength of the U.S. dollar and the negative market mood surrounding the cryptocurrency industry. On Wednesday, reports came from the cryptocurrency market that Norway might be the following country after China hit hard on Bitcoin mining operations. However, the Scandinavian country has expressed its concerns over the potential environmental impact of crypto mining activities.
After Great China banned cryptocurrency-related activities in the country, including mining, Norway became one of the top destinations for mining operations. The minister of the local government, Bjorn Arild Gram, said the government was mulling over potential policies to discuss the difficulties related to crypto mining. He also added that it was difficult to justify the extensive use of renewable energy. He also referred to a proposal by the Swedish government urging European nations to ban energy consumption from proof-of-work crypto mining. This news negatively impacted the whole crypto market as another country was planning to join China in banning crypto mining over energy concerns.
Moreover, the International Monetary Fund (IMF) has warned El Salvador that it could be on the path to financial instability following making Bitcoin legal tender. The IMF acknowledged that bitcoin and other digital currencies could facilitate efficient payments, but making them legal tender could disrupt the financial system. The IMF suggested that El Salvador narrow its Bitcoin law's scope and focus more on strengthening its regulations and supervisory oversight of the new payment system. These concerning suggestions from the IMF to El Salvador added to the negative market mood and dragged BTC/USD further to the downside.
Meanwhile, on Tuesday, the Indian Parliament published a bill that is, for the moment, awaiting votes from the legislative for the creation of an official digital currency and a potential ban on all private cryptocurrencies. Parliament announced the introduction of 26 new bills in the Winter Session, including a Cryptocurrency and Regulation of Official Digital Currency Bill, 2021. This news triggered a massive sell-off on a major cryptocurrency exchange in the country and caused a drastic price drop for leading cryptocurrencies like BTC/USD and ETH/USD.
On the flip side, investment funds from major US investment banks like Morgan Stanley have increased their exposure to Bitcoin through purchases of shares of Grayscale Bitcoin Trust. On Tuesday, the U.S. SEC filed that Morgan Stanley Insight Funs had increased its holdings of Grayscale Bitcoin Trust by more than 63% in the second quarter of this year. This news added strength to the BTC/USD and capped a further decline in its prices on Wednesday.
BTC/USD Intraday Technical Levels
Pivot Point: 56962.6
BTC/USD - Technical Outlook
On Thursda, the BTC/USD sliped below a pivot point support level of 56,950 level. Bitcoin's price held above the $55,500 support level. BTC has created a base over $55,500 and is now attempting a decent comeback wave. The price broke through the $56,500 and $57,000 barrier levels. Furthermore, on the hourly chart of the BTC/USD pair, there was a break above a strong negative trend line with resistance near $57,100. The pair even surpassed the $57,500 mark and the 100 hourly simple moving average.
However, the price is still trying to break through the $58,000 barrier. The price has hit a high near $58,222 and is now consolidating gains.The bears pushed the market below the 23.6 percent Fib retracement level of the upward run from the swing low of $55,909 to the high of $58,222. The $57,500 level provides instant support. Near the $57,000 level, the first substantial support is formed.
If bitcoin remains above the $56,500 support level, it may continue to increase. On the upside, an early resistance level is near $58,000. The next significant resistance is located near the $58,500 level. A close over the $58,000 and $58,500 levels could signal the start of a steady rise in the near term. The next major barrier is located near the $60,000 level.
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