Descending Triangle Pattern in Play
After reaching a high of $43,931.0 and a low of $40,830.0, the BTC/USD pair was closed at $43,180.0. Despite recent encouraging developments in the bitcoin sector, BTC/USD remained green over the weekend. Dennis Lynch, the Head of Counterpoint Global at Morgan Stanley Investment Management, has stated that bitcoin can gain value during economic downturns and has described the asset as anti-fragile.
He compared bitcoin to Kenny from "South Park," who dies in every episode before reappearing in the next. He believes that bitcoin will withstand market volatility and even thrive when other assets are crashing. He also admitted to holding bitcoin, stating that it was becoming a global trend to do so. This continued to strengthen the BTC/USD pair, causing its prices to rise.
PortAventura World, a Spanish amusement and leisure park, has announced that it will be the first in its field to provide bitcoin payments to its customers. This effort is planned to start next season and will allow crypto transactions at the resort's hotels at first.
PortAventura World was developing software that would introduce a new cryptocurrency option for its clients, so guests of the resort hotel will pay for their accommodations in bitcoin starting in January 2022. The decision was made in response to the rising demand for cryptocurrency solutions and the company's desire to stay current with current trends. This increased the value of BTC/USD and pushed its prices up on the exchange.
The Giving Block, focusing on bitcoin donations, has increased its crypto charity reach with a new relationship. The company stated that it would collaborate with RenPSG, a charity platform that will allow its contributors to transfer cryptocurrencies such as Bitcoin into new donor-advised funds to help non-profits and other charitable organizations. On the other hand, this pushed BTC/USD prices higher on the board.
Marion Lambourne, a Deutsche Bank analyst, believes bitcoin can become a digital gold standard. She went on to say that bitcoin will be used as digital gold for generations to come and that it will be unique in that it will be free of political control. This confirmation was not unexpected in the cryptocurrency industry, as many analysts had anticipated it previously. However, the Deutsche Bank is a reputable financial institution, and such statements from its analysts propelled BTC/USD values higher over the weekend.
On the other hand, the Chinese Central Bank has published a fresh statement stating that all services that assist the exchange of fiat currency for crypto assets or crypto-assets will be considered illegal from now on.
BTC/USD Intraday Technical Levels
Pivot Point: 42647.0
BTC/USD - Technical Outlook
The BTC/USD pair is currently trading with a bullish bias at 43,884, with immediate resistance around 45,129. Bitcoin is currently encountering significant resistance on the 4-hourly timeframes at the 44,250 level which is being extended by a downward trendline. Closing of a Doji candle right below this downward trendline is supporting odds of a bearish correction in Bitcoin.
An upward breakout of the 40,250 level exposes the Bitcoin price towards the resistance levels of 45,130 and 47,335 respectively. An additional breakout at the 47,334 level exposes the pair towards the 49,557 level. While the support continues to stay at the 42,906 level, which is being extended by a pivot point. A bearish breakout below this level exposes the BTC/USD to levels as low as 41,363 and 40,700. However, Bitcoin’s bullish bias dominates over the 42,650 level and vice versa. All the best!
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