Bitcoin Breaks Below the Pivot Point at 47,600 – What to Expect Next
The BTC/USD closed at $48,989.0 after placing a high of $48,244.0 and a low of $48,158.0. The BTC/USD turned green on Wednesday
Arslan Butt•Thursday, August 26, 2021•2 min read
The BTC/USD closed at $48,989.0, after placing a high of $48,244.0, and a low of $48,158.0. The BTC/USD turned green on Wednesday, and remained range-bound throughout the trading session. The adoption of Bitcoin is increasing with time, as institutional investors are becoming more inclined towards digital assets, and this has been pushing the BTC/USD prices in an upward direction. Over the last year, the worldwide use of cryptocurrencies has increased exponentially, and two Latin American countries, Argentina and Venezuela, are ranked among the top 10 countries in the world, with a high percentage of crypto users.
Vietnam heads the list, followed by India and Pakistan in second and third place respectively. Venezuela is ranked seventh, while Argentina is in tenth place. The rising use of cryptocurrencies benefited the whole crypto market, pushing the BTC/USD prices higher on Wednesday.
On the other hand, the nominated chairman of the South Korean Financial Services Commission, Koh Seung-beom, believes that digital assets will not work successfully as financial instruments and that they cannot be categorized as financial assets, as they are not able to function as real currency.
Koh Seung-beom, who was nominated by the President of Korea, to be the next Chairman of the FSC, expressed his doubts regarding the successful role of cryptocurrencies in the economic system. He also agreed with the opinion of the IMF, that virtual assets were not yet ready to serve as national currencies.The IMF has said that bitcoin and altcoins are volatile and risky assets, but the agency has also acknowledged their benefits, as they can be used to diversify one’s portfolio and bring significant profits. The IMF said that digital assets could succeed in countries with shattered economies and shaky inflation. These mixed comments, coupled with the negative comments by Koh Seung-beom capped further gains in the BTC/USD on Wednesday.
Meanwhile, the Central American Bank for Economic Integration (CABEI) has called on other banks to pay close attention to Bitcoin’s impact on remittance costs in El Salvador. According to the bank, remittances are an important aspect of El Salvador’s Bitcoin adoption policy. The executive president of CABEI, Dante Mossi, said that neighboring countries would want to follow the example of El Salvador if Bitcoin successfully reduces the cost of the remittance market. He even called the adoption of Bitcoin by the country an out-of-this-world experiment that could change the country’s financial sector. These comments by Mossi added further upward momentum to the BTC/USD.
Bitcoin (BTC/USD) – Technical Outlook – Major Resistance at 47,600
BTC/USD, the most popular cryptocurrency pair, is currently trading at 47,420, having breached the pivot point support mark of 47,603. On the lower side, the BTC/USD pair is testing a new support level of around 47,625 pips.
For the time being, Bitcoin has violated the previously created sideways trading range between 48,600 and 47,722. A breakout from this range will put additional selling pressure on Bitcoin.
Daily Technical Levels
Support Resistance
4,7683.4 4,9769.4
4,6377.7 5,0549.7
4,5597.4 5,1855.4
Pivot Point: 4,8463.7A breakout at the 47,722 support mark would expose the
BTC/USD pair to the downside at the 46,200 and 45,420 support levels. Further breakouts at the 46,200 level would expose the BTC to support at the 45,420 level.
A breach of the 47,600
resistance level, on the other hand, would expose Bitcoin to levels of 48,460 and 49,800. The
RSI and the 50 EMA both point to a sell signal. The emphasis should remain on 47,60, as there is still a strong selling tendency below this level. Best wishes!
Arslan Butt
Lead Markets Analyst – Multi-Asset (FX, Commodities, Crypto)
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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