Bitcoin Recovers from $40K Low Level
After reaching a top of $43622.3 and a low of $39678.0, BTC/USD closed at $40664.0. The BTC/USD slipped for the third straight session on Tuesday, reaching its lowest level since August 5. Following the meltdown in global financial markets, Bitcoin fell below the $40K threshold on Tuesday. In the midst of the rising uncertainty, the cryptocurrency market joined the world stock markets and hit fresh monthly lows on Tuesday. Whereas bitcoin experienced multi-thousand-dollar price drops in a single day, altcoins were hit even harder, with enormous double-digit price drops.
The bitcoin market was not immune to the anxieties sparked by Evergrande's imminent collapse. Bitcoin, the market's most valuable cryptocurrency, has plummeted from $48K to under $40K in a significant sell-off. ETH/USD plummeted as well, falling below the 3K mark.
The recent statements by bitcoin enthusiast and American TV celebrity Jim Cramer may have also prompted the market's big sell-off. He believes that the Chinese Evergrande debt issue will continue to affect financial markets, including the cryptocurrency industry. To avoid future losses, he urged consumers to cash out some of their cryptocurrency assets.
Cramer believes that real estate companies' debt troubles will continue to affect the digital asset market in the near future and that crypto investors should profit while they can rather than risk losing money. People began selling their holdings while they could still profit from them due to these comments, and the price of Bitcoin decreased as a result.
Meanwhile, BTG Pactual, Latin America's largest investment bank, and a 38-year-old Brazilian financial institution, has announced the launch of its crypto trading and custody platform. According to the press release, the company has an annual revenue of more than $1.8 billion and has successfully launched the Mynt digital currency platform.
This platform will provide clients with direct bank exposure to bitcoin and well-known altcoins such as Ether. The Brazilian firm claims to be the region's first lender to develop a specialized bitcoin trading platform to accommodate other blockchain-based assets. This news held the day's losses in BTC/USD to a minimum.
BTC/USD Intraday Technical Levels
Pivot Point: 41321.4
BTC/USD - Technical Outlook
Bitcoin dropped below $40000 in a very short period of time. It's already back above the 41,271 mark. Bitcoin is currently trading at 42304, and it is on its way to the 42968 level, which is the next resistance level. The Bitcoin price broke through this resistance level, exposing the Bitcoin price to the next barrier level of 44269. An upward trend line may be noticed on the 4-hourly timescale extending this particular resistance level. The closure of candles below the 44269 level can assist us in capturing a Bitcoin sell trade.
On the downside, Bitcoin may find immediate support at 41271, with a break above this level exposing Bitcoin prices to the next support level of 38898. The leading technical indicator, the RSI, is still in the selling zone today. As a result, the chances of a selling trend remain higher today. A selling trade below the 45341 level is also suggested by the 50-simple moving average. In general, Bitcoin is dominated by a bearish bias. All the best!
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