BTC/USD Analysis – October 07, 2021

Bitcoin Price Prediction

The BTC/USD ended the day at $55,331.0, having reached a high of $55,724.0 and a low of $50,448.0. The BTC/USD has reached its highest level since May as the crypto market improves. The leading cryptocurrency, Bitcoin, reached its 5-month highest level on Wednesday after the SEC Chairman, Gary Gensler, said that the U.S. SEC has no plans to ban cryptocurrencies as China did.

He further noted that even if this type of decision were to be made, it would be up to Congress to make such a decision. He backed up the statement recently made by Jerome Powell, the Chairman of the Federal Reserve, who said that the Fed had no intention of banning or limiting the use of cryptocurrencies.

According to the CEO of Valkyrie Investments, Leah Wald, Bitcoin was an excellent digital gold that had done a brilliant job of nailing down that store of value narrative. She discussed that if bitcoin breaks the $50,000 level and maintains this price level, a bullish run could take it to new highs during the fourth quarter. She added that she was very excited about October and Q4, which could be beneficial for BTC. So far, her prediction has materialized as Bitcoin has reached $55,000.

The increased interest of institutional investors in bitcoin and cryptocurrencies has also been supportive of BTC/USD. A report published by COinShares showed that inflows in bitcoin have picked back up. Although the market share of altcoins was increasing more rapidly due to the rise of decentralized finance networks like Ethereum and Solana, bitcoin was still gaining due to increased institutional interest.

According to the report, the institutional inflows were recorded for the previous week as $90 million, out of which bitcoin alone secured $69 million, which accounted for about 76.6% of total inflows. This showed that institutional investors had turned back to bitcoin, which added further strength to the already rising prices of BTC.

Bitcoin was also gaining amid the prospects of being legal tender for another country, Brazil. The government of Brazil has shown its plans to follow the steps of El Salvador and legalize bitcoin payments throughout the country. Brazil is the 9th largest economy globally, and its adoption of bitcoin will give a massive spike in the value of BTC.

BTC/USD Intraday Technical Levels

Support Resistance

51944.6 57220.6

48558.3 59110.3

46668.6 62496.6

Pivot Point: 53834.3

BTC/USD - Technical Outlook

The leading cryptocurrency, Bitcoin, is trading with a solid bullish bias at the 54,998 level, facing immediate resistance at the 55,355 level. Most of the bullish buys in Bitcoin are fundamentally driven. Therefore, the odds of a bullish breakout remain high.

In the case of a bullish breakout of the 55,355 resistance level, the Bitcoin price will be exposed towards the next resistance level of 57,220. Moreover, the breakout of the 57,220 level exposes the cryptocurrency pair towards the next resistance level of the 55,110 level.

As we can see, the RSI and Stochastic are around 80; Bitcoin is trading in an overbought zone. Therefore, the closing of Doji and Shooting Star candles below 55,355 resistance signals the chances of a bearish correction in Bitcoin. Thus, the bearish bias dominates below 55,355 and vice versa. All the best!