Choppy Sessions in Play
The BTC/USD was closed at $41,064.0 after reaching a high of $42,777.0 and a low of $40,928.0. For the second consecutive session on Tuesday, BTC/USD extended its decline towards the $40,000 level on Tuesday and dropped for the second consecutive session. Chinese e-commerce giant Alibaba has said that it will delist bitcoin mining equipment offers on its platform and will prohibit their future sale after the People’s Bank of China issued a renewed and reinforced ban on bitcoin and cryptocurrency.
The country has issued a strict warning and prohibited the sale of virtual currency miners in addition to the prohibition against selling virtual currencies such as Bitcoin. The renewed China ban of bitcoin and cryptocurrencies has been weighing on the whole crypto market since the 24th of September when the ban was issued. However, the ban's consequences in the form of shutdown or halted services from major companies like Alibaba and Sparkpool have added downward pressure on leading cryptocurrencies.
On Tuesday, the Tesla CEO, Elon Musk, said at a Code Conference in Beverly Hills, California, that the U.S. government should avoid regulating crypto. He noted that it was not possible to destroy crypto, but governments could slow down its advancement. This news had an almost null impact on the BTC/USD price on Tuesday.
Furthermore, the rising strength of the U.S. dollar added further loss in the BTC/USD as both have a negative correlation. The U.S. Dollar Index was at its 11-month highest level on Tuesday at 93.81, which added further support to the greenback and weighed on the bitcoin. The U.S. dollar was gaining on the back of increased expectations of a rate hike and higher than expected inflation as acknowledged by the Federal Reserve.
On the flip side, a filing from the United States Securities and Exchange Commission showed that BlackRock Financial Management had increased the number of its bitcoin futures contracts since Q1 2021. On Tuesday, the filing with the SEC suggested that the BlackRock Global Allocation Fund had included about 54 bitcoin futures contracts, and the gains from these contracts were recorded at $369K. The company holds about $9.5 trillion in total assets under management.
BTC/USD Intraday Technical Levels
Pivot Point: 41589.7
BTC/USD - Technical Outlook
The technical side of the BTC/USD pair is mostly unchanged as it’s trading with a bearish bias at 42,040, 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!
JOIN LONGHORNFX TODAY
24/7 live support, lightning fast withdrawals, guaranteed safe and reliable trading platforms with a true ECN broker.