Bitcoin Breaks Above 45,150 Pivot Point
The BTC/USD reached a high of $46,823.0 and a low of $43,514.0 before closing at $44,960.0. Despite positive developments in the Bitcoin ecosystem, BTC/USD fell on Monday after climbing for two consecutive sessions.
Mthuli Ncube, Zimbabwe's Finance Minister, believes that the country's residents should accept cryptocurrency payments. He believes that the decreased cost of remitting funds after El Salvador legalized bitcoin could be a good answer for Zimbabweans, who spend up to $90 million on remittance fees each year.
The Minister had previously expressed his support for bitcoin and other cryptocurrencies. He also advised citizens to invest in learning about emerging inventions like Bitcoin a few years ago, and he asked governments to follow the lead of countries like Switzerland in accepting the flagship cryptocurrency.
On the other side, sources from El Salvador claim that the country will exempt Bitcoin investors from paying capital gains and income taxes. Javier Argueta proposed this, a legal adviser to President Nayib Bukele, to attract international investment through significant tax savings on BTC.
He claimed that anyone with bitcoin assets and high profits would be exempt from paying taxes and that this was done solely to encourage foreign investment. He also stated that the country would not levy any taxes on BTC capital gains and the income and profits generated from crypto investments.
On Monday, MicroStrategy's CEO, Michael Saylor, also stated that the company had purchased an additional 5050 BTC for $242.9 million in cash during the third quarter of 2021. As per Saylor, the company paid $48,099 on average for bitcoin. This acquisition brought the firm's total BTC holdings to 114,042 BTC, with a total purchase value of $3.16 billion and an average price of $27,713 per BTC.
In addition, Shark Tank star Kevin O'Leary, or Mr. Wonderful, has spoken out about bitcoin and other cryptocurrencies, predicting that a trillion dollars will pour into Bitcoin in the next few years. He also stated that cryptocurrency would become an institutional asset class, in his opinion. He did not give a timeframe for this but did say that it would happen someday because cryptocurrencies aren't going away.
Despite all of the above-mentioned positive factors, the BTC/USD price fell on Monday, and the reason might be ascribed to the Central Bank of Colombia's recent announcement. Leonardo Villar, the manager of Colombia's Banco de la Republica (Central Bank), has stated that cryptocurrencies are hazardous investments that should be regulated.
Cryptocurrencies, according to Villar, are systems with features that could be attractive in the future, but they must first be controlled owing to the high level of risk involved with them. The use of Bitcoin in Colombia is estimated to be around 2% of GDP, and officials are concerned that criminal organizations could use digital assets, so they must first be regulated.
BTC/USD Intraday Technical Levels
Pivot Point: 45099.0
BTC/USD - Technical Outlook
Bitcoin is trading with a slight bullish bias at the 45,700 level. On the downside, Bitcoin is gaining immediate support at the 45,150 level and a bearish crossover below this level could expose the next support level of 43,430. Furthermore, another breakout of the 43,430 level could expose Bitcoin prices towards the next support level of 41,696. In the 4-hour timeframe, Bitcoin has violated the pivot point level of 45,150. Currently, this pivot point level is working as a major support for Bitcoin. However, the crossover at the 45,614 level exposes Bitcoin prices towards the next resistance level of 46,518.
Furthermore, a break out of the 46,518 level exposes Bitcoin prices to the next double top resistance level of 47,902. Speaking of the leading technical indicators such as RSI, they are holding in a buying zone alongside the 50 day SMA. It suggests a slight bullish bias today, especially above the 45,150 level and vice versa. All the best
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