BTC/USD Analysis – September 17, 2021

Bullish Bias to Dominate Over 47,475 Level

The BTC/USD reached a high of $48,518.0 and a low of $47,080.0 before closing at $47,786.0. The Bitcoin remained flat throughout Thursday's trading session and lost a little chunk of its daily gains. Protests against El Salvador's newly enacted Bitcoin Law gathered steam on Thursday, putting pressure on the top cryptocurrency. Protesters in El Salvador kicked against the country's new Bitcoin law on Wednesday, destroying a cryptocurrency shop in the capital city of San Salvador.

The Chivo-supported kiosk was set on fire by a swarm of journalists and protestors, and videos of the incident went viral on the internet, adding to the pressure on BTC/USD values. The protestors did not stop there, placing anti-BTC emblems and placards on the new Bitcoin machines installed by the El Salvadorian government for changing BTC to cash.

Signs such as "democracy is not for sale" were placed on BTC machines in an attempt to express dissatisfaction with El Salvador's recent Bitcoin Law, which made BTC legal tender in the country.

Furthermore, according to a report published by S&P Global, the risks connected with El Salvador's adoption of bitcoin as an alternative legal tender to the US dollar appeared to outweigh the benefits, and there were immediate negative credit implications. It says that the use of bitcoin jeopardises a possible agreement between El Salvador and the IMF. Fears grew that the Central American country would be unable to negotiate an agreement with the IMF for a $1 billion loan and that its usage of bitcoin would result in bad credit consequences. The cryptocurrency BTC/USD fell on Thursday as a result of the bad developments around the environment.

The growing values of the US dollar, which have a negative link, could be another explanation for the decline in BTC/USD on Thursday. The US Dollar Index (DXY) hit a three-week high of 92.96 on Thursday, with the greenback's rise spurred by the stronger-than-expected Retail Sales data release. The higher-than-expected Retail Sales data revealed stronger consumer confidence, raising anticipation that the Fed may hint at decreasing economic stimulus at its upcoming monetary policy meeting.

On the other hand, according to Changpeng Zhao, the CEO of Binance, an increasing number of traditional monetary institutions have recently turned their attention to cryptocurrencies, particularly bitcoin. He also stated that the trading platform's structure would be altered to meet regulatory requirements.

He believes that major financial institutions and investors have already recognised the benefits of cryptocurrencies and have begun to join the cryptocurrency bandwagon. He went on to say that BTC was more than just a currency; it was also a multi-asset class technology and a complete new platform. This is why many financial organisations regard BTC as an investment vehicle.

BTC/USD Intraday Technical Levels

Support Resistance

47071.4 48509.4

46356.7 49232.7

45633.4 49947.4

Pivot Point: 47794.7

BTC/USD - Technical Outlook

Bitcoin prices are now trading at 47,816 on Friday. Bitcoin has now breached the daily pivot point resistance mark of $47,475. On the upside, the 48,843 mark will likely act as immediate resistance for the BTC/USD. Additional bullish developments till the 49536 and 50600 resistance marks could be triggered by a breakout at the 48,843 level.

Bitcoin is expected to find immediate support at the 47,772 level, which is prolonged by an daily pivot point mark. Furthermore, a break underneath this level could extend the selling trend to the levels of 47,080 and 46,009. Today, Bitcoin has a positive tendency, particularly above 47,794 levels. Good luck!