Pivot Point Breakout at 43,150
The BTC/USD was closed at $42,191.0 after placing a high of $44,354.0 and a low of $42,144.0. BTC/USD dropped on Monday and reversed its course amid the negative developments surrounding the cryptocurrency market. Once again, China came forward with another blow to Bitcoin and cryptocurrencies, which ultimately weighed on the market sentiment. However, this time on a lighter note, as there was nothing new for investors.
The country has previously sought to remove all miners, and now it has come up with further restrictions by outright banning crypto on a broad scale. The latest announcement from the People’s Bank of China stated that the virtual currency derivative transactions were all illegal financial activities and were strictly prohibited.
It looks like China was trying to eliminate all potential competition for its digital yuan. According to the government of China, the currency can be tracked by them, which means it can be used to spy on people, which will enable regulators to know what the people are spending on. China argues that cryptocurrencies can potentially hide illicit financial activities due to their anonymity from the agencies trying to keep the public safe.
Furthermore, the CEO of JPMorgan Chase, Jamie Dimon, also added to the downward momentum of Bitcoin on Monday by saying that he would not buy the leading digital asset even though he believed that it could increase 10X in a matter of five years. In 2017, Dimon called Bitcoin fraud due to the capability of criminals to escape capture by authorities by operating their financial transactions in BTC rather than in U.S. dollars. These comments from the CEO of one of the biggest banks in the U.S. added to the loss in the already declining BTC/USD prices.
Additionally, the analysts at JPMorgan said that many institutional investors were dumping bitcoin for Ethereum, and this news added to the further decline in BTC/USD prices. According to analysts at JPMorgan, a big flow of money has been flowing into the second largest cryptocurrency in recent months amid the success of decentralized finance. The recent data showed that big institutional investors have started exiting bitcoin futures to invest in Ethereum futures. The restrictions on the purchase of actual cryptocurrencies have left investors with the option of trading crypto futures.
BTC/USD Intraday Technical Levels
Pivot Point: 42896.3
BTC/USD - Technical Outlook
The BTC/USD pair is currently trading with a bearish bias at 42,224, with immediate resistance around 43,129. Bitcoin is currently encountering significant resistance on the 4-hourly timeframes at the 42,600 level, which is being extended by a current high level. Closing a bearish engulfing candle right below this level supports the odds of a bearish correction in Bitcoin.
A bearish breakout of the 42,005 level exposes the Bitcoin price towards the support levels of 41,411and 40,995, respectively. An additional breakout at the 40,995 level exposes the pair towards the 40,535 level. At the same time, the resistance continues to stay at the 43,150 level, which is being extended by a pivot point. A bullish breakout above this level exposes the BTC/USD towards 43,765 and 44,289 levels. Bitcoin’s selling bias dominates below 42,650 level and vice versa. All the best!
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