Bitcoin Price Forecast – BTC/USD Violates Upward Channel, Dramatic Sell Triggered!
Arslan Butt•Wednesday, May 19, 2021•2 min read
[[BTC/USD-sponsored]]
BTC/USD closed at $42,935.0 after placing a high of $45,474.0 and a low of $42,611.8. Bitcoin extended its losses and dropped for the seventh consecutive session on Tuesday despite a new Bitcoin purchase by a publicly-traded business intelligence firm. The CEO of MicroStrategy, Michael Saylor, disclosed that the company purchased about 229 BTC for $10 million in cash. After this purchase, the total holding of BTC by MicroStrategy reached 92,079 worth of total $2.251 billion with an average price of about $24,450 per bitcoin. The report suggested that the firm has almost doubled its money since it started investing in cryptocurrency. Meanwhile, according to new research, the hacker group behind the Colonial Pipeline ransomware attack, DarkSide, is reported to receive a total of $90 million in bitcoin ransom payments before shutting down last week.
Colonial Pipeline was hit with a cyberattack earlier this month that forced the company to shut down approximately 5,500 miles of pipeline in the United States. The FVI blamed this attack on DarkSide, a cybercriminal gang believed to be based in Eastern Europe. Colonial is said to have paid a $5 million ransom to the group.
Galaxy Digital published a report amid rising concerns over Bitcoin energy consumption and suggested that the leading cryptocurrency consumes less energy than the banking and gold industries. In February, BTC PEERS published an article analyzing the amount of energy. Bitcoin mining uses. The report suggested that Bitcoin consumes around 121.36 TWh annually, about 0.6% of global electricity production. The figure was said to be enough to power Switzerland for more than two years.After the awareness about Bitcoin energy consumption, the Tesla CEO Elon Musk, who holds major influence in the crypto market, announced to halt its use due to its environmental effects. This has been weighing on Bitcoin prices for the past two weeks and has dragged its prices below the $45,000 level.
BTC/USD Daily Technical Levels
Support Resistance
44795.2 48915.2
43007.6 51247.6
40675.2 53035.2
Pivot point: 47127.6
BTC/USD is exhibiting a nosedive, falling from $43,348 level to $39,197. On the lower side, the BTC/USD pair is likely to gain support at a 39,840 level extended by 200 periods EMA. The MACD and Stochastic have entered the oversold zone, but at the same time, the leading cryptocurrency bitcoin has violated the double bottom pattern at 43,348 level. Below this, the odds of selling trend remain solid. On the lower side, support stays at 32,529 level now, and bearish bias seems strong today. Good luck!
Arslan Butt
Index & Commodity Analyst
Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics.His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker.His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.
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