Bitcoin Price Prediction
The BTC/USD coin pair maintained its previous upward rally and drew further heavy bids around the $58,500 level. Bitcoin remained strong above the $58,000 level against the US dollar. BTC started a fresh increase, and it could rally above $59,500. Bitcoin price initially found support near $54,000 and then broke through the key $58,000 resistance zone to re-enter the positive zone.
The BTC/USD is trading at $58,033.0, having gained over 3.12% in 24-hours. Furthermore, that the BTC's current market ranking is 1, with a live market cap of USD 1,065,578,155,437. It has a circulating supply of 18,840,512 BTC coins and a max. supply of 21,000,000 BTC coins.
However, the reason behind Bitcoin's upward rally could be attributed to the latest reports suggesting that Arcane Research says that activity on the CME indicates that institutional traders "have returned to Bitcoin."
Data shows the latest rise in Bitcoin's price was sponsored by a significant uptick in the trading volume. This could suggest that the current uptrend may be sustainable. As per Arcane Research's latest report, the Bitcoin trading volume is rising fast this month after a relatively slow last few days of September. As a result, positive news tends to have a positive impact on Bitcoin prices.
Apart from this, China's Bitcoin (BTC) crackdown prompted the profitable business out of the country and helped establish the US as the top country for mining operations, according to the latest data from the Cambridge Centre for Alternative Finance. This was seen as one of the key factors that had some additional positive impact on BTC prices. On the other hand, the Cambridge Bitcoin Electricity Consumption Index (CBECI), which gives a real-time estimate of the total electricity consumption of the Bitcoin network, stated that the mining activity in China has sunk to zero.
Elsewhere, the selling bias surrounding the dollar was seen as another key factor that pushed the BTC/USD pair higher. The broad-based US dollar touched its lowest level this week against major peers on the day, taking a break from a rally that had lifted it to a one-year high backed by expectations for quicker Federal Reserve interest rate hikes. Even after minutes of the Federal Open Market Committee's September meeting, the US dollar pulled back, affirmed that tapering of stimulus is all but certain to start this year, and showed a growing number of policymakers worried that high inflation could persist.
BTC/USD Intraday Technical Levels
Pivot Point: 56459.7
BTC/USD - Technical Outlook
Bitcoin exceeded the key drop's 76.4% Fib retracement level from the $57,835 swing high to the $54,020 low. It opened the doors for a fresh high above the $59,000 level. The price is now accelerating higher above the $58,000 level.
Initial resistance is near the $58,750 level that marks the 1.236 Fib extension level of the vital drop from the $57,835 swing high to $54,020 low. Furthermore, the first key resistance is near the $59,000. A clear break above the $59,000 resistance exposes the coin further higher.
On the other hand, Bitcoin could start a downside correction if it fails to clear the $59,000 resistance zone. Immediate support on the downside is near the $58,000 level. The 1st-major support is now forming near the $57,800 level. A downside break below the $57,800 level could set the pace for a downside correction. The next significant support is now near the $56,500 level and the 100 hourly SMA. All the best!
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