BTC/USD Analysis – October 19, 2021

Bitcoin Price Prediction

The price of BTC/USD, the most valuable cryptocurrency by market cap, surpassed $62,000 after the Securities and Exchange Commission approved the launch of the first bitcoin-linked exchange-traded fund. According to Coin Metrics, Bitcoin extended its climb over the weekend and is now trading at over $61,285. This, coupled with other headlines such as Jamie Dimon labelling bitcoin "worthless" and Coinbase announcing plans to develop an NFT, or nonfungible token, platform, dominated the news this week. Here are seven significant events in the crypto world.

According to CNBC, the United States is currently the most popular destination for bitcoin miners. According to new data from the University of Cambridge, the United States accounted for 35.4 percent of bitcoin's hash rate, or the collective computing power of all miners, surpassing China for the first time.

This follows China's renewed ban on bitcoin mining earlier this year, which drove the market offshore. Cambridge discovered that China's average monthly share of global hash rate dropped out in July, a significant reversal from September 2020, when China took approximately 67 percent of the market. The price of bitcoin has risen in recent weeks, spurred by expectations that a US launch is coming. Since it's low in late July, the price of the cryptocurrency has more than doubled.

The growing usage of cryptocurrencies may weaken the efficiency of US economic and financial sanctions, potentially undermining the function of the US currency, according to the Treasury Department, as reported by news agency AFP. Treasury discovered that "although sanctions remained an essential and effective policy instrument, they also face new difficulties, including rising dangers from new payments systems, the expanding use of digital assets, and cybercriminals" following an assessment of the US sanctions system.

BTC/USD Intraday Technical Levels

Support Resistance

59484.49 62858.77

576672.49 59162.0

56110.10 64421.0

Pivot Point: 66233.0

BTC/USD - Technical Outlook

The technical side of Bitcoin hasn’t changed a lot as the BTC continues to follow the same technical levels as discussed yesterday. On the BTC/USD hourly chart, there was also a break over a strong negative trend line with resistance above $60,850. On the bullish side, a break of the 63,008 resistance level might push the Bitcoin price up to the 65,084 level. While the support level remains at around 60,0048 levels, On the 4-hour timeframe, Bitcoin has formed a bullish engulfing pattern that’s supporting a buying trend. While the leading technical tools like RSI and Stochastic are supporting a bullish trend in Bitcoin, it’s not just the fundamentals that are supporting a buying trend in Bitcoin, but also the technical side. "Bullyish bias" dominates over 60,704 and vice versa. All the best!