Technical Analysis

BTC/USD Analysis – October 06, 2021

By LonghornFX Technical Analysis
Oct 6, 20213 min

Bitcoin Surge Above $51,000

The BTC/USD ended the day at $51,508.0, having reached a top of $51,891.1 and a low of $49,065.0. BTC/USD resumed its upward trend, surging for the third consecutive session on Tuesday, breaking beyond $50,000 for the first time since El Salvador's acceptance.

The world's largest cryptocurrency by market value surpassed $50,000 for the first time in four weeks, owing to growing institutional interest in the currency. Banks and financial institutions were increasingly investing in bitcoin to meet increased investor demand, increasing the value of the BTC/USD.

The U.S. Bank, the 5th-largest bank in the United States, revealed on Tuesday that its bitcoin custody service is now available to fund managers. Gunjan Kedia, the vice-chair of the bank's wealth management and investment service business, stated that the offering would assist investment managers in storing private keys for bitcoin, bitcoin cash, and litecoin through sub-custodian NYDIG. He said that in the future, support for additional cryptocurrencies like Ethereum would be implemented.

This was the latest indication that traditional financial institutions were beginning to recognize cryptocurrencies as a viable asset class. Kedia stated that their clients were becoming increasingly interested in the possibilities of cryptocurrencies as a diversified asset class, and she also stated that she does not believe there was a single asset manager who was not considering it right now. These comments contributed to the rise in BTC/USD values.

Data from digital asset manager CoinShares showed that bitcoin investment products and funds saw inflows for the 7th week in a row on Monday, as institutional investors warmed to more encouraging pronouncements from regulators.

On Tuesday, the specialist crypto tracker and research provider CoinDesk published a market analysis that indicated a 25% rise for bitcoin and a 32% gain for ether during the third quarter. As per the paper, there has been an increase in NFT, which uses blockchain to record the ownership of digital things such as images, films, collectibles, and even land in virtual worlds. In the third quarter, the sale of NFT increased to $10.7 billion.

Furthermore, the Nicklaus Children's Hospital Foundation announced on Tuesday that it has begun collecting bitcoin donations. This non-profit organization in South Florida caters to the needs of Nicklaus Children's Hospital children and families. They hope to provide donors with an alternate and tax-advantaged gift mechanism. However, it was unclear whether or not the group would keep BTC. The relationship with The Giving Bock will enable the new giving mechanism. This news also contributed to the rise in BTC/USD values.

BTC/USD Intraday Technical Levels

Support Resistance

49751.7 52577.8

47995.3 53647.5

46925.5 55403.9

Pivot Point: 50821.4

BTC/USD - Technical Outlook

Bitcoin's technical analysis shows that it has a strong bullish bias, with the currency now trading around $51,424 USD. BTC/USD has already surpassed the pivot point of 50,900. The closure of candles over the 50,900 level confirms Bitcoin's strong bullish trend.

On the upside, Bitcoin is expected to hit an instant resistance mark of 52,585. Any violation of the 52,585 level, on the other hand, has the potential to push Bitcoin prices up to the 53,669 level. A violation of the 50,900 level, on the other hand, might spark a powerful selling trend in Bitcoin to the 49,745 and 47,990 levels.

The leading technical indicator, such as the RSI, is still in the bullish territory. As a result, the prospects of a positive trend continuation on Tuesday remain high. The 50-days SMA in Bitcoin is supporting a strong bullish trend. All the best!


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