Bitcoin Breaks Below 48,757 Pivot Point – What’s Next?

[[BTC/USD]]  closed at $48,800.0 after placing a high of $48,650.0 and a low of $47.244. BTC/USD remained depressed and range-bound throughout the weekend and showed minimal movement amid the lack of positive developments surrounding the Bitcoin ecosystem. It is reported that China has doubled down on its crypto crackdown as it has recently issued a reminder to the general public that Bitcoin and other digital assets are not legal tender and have no actual value.

The deputy director of the Financial Consumer Rights Protection Bureau of the People’s Bank of China, Yin Youping, has said that the central bank will maintain a high-pressure situation and continue the crackdown on digital currency-related transactions. It was also reported that the China Banking and Insurance Regulatory Commission was working with the People’s Bank of China to develop systems for monitoring and combating the use of cryptocurrencies.

Furthermore, the local governments in China have also started taking proactive measures to stop crypto activities, as the regulators from Yingjian County have recently asked hydropower plants to cut off the supply to Bitcoin miners in the area. This crypto crackdown by China has been weighing on the whole crypto market lately, and the leading cryptocurrency has suffered as a result.

Meanwhile, the loss in BTC/USD throughout the weekend could also be attributed to the latest report from Australia, where cryptocurrency scams resulted in losses of $25M during the first half of 2021 in the country. A report from the Australian Competition and Consumer Commission showed that investment scams reached record levels in the country this year, and most of the scams involved digital assets. This news added to further losses in BTC/USD over the weekend.

Furthermore, the Brazilian Federal Police arrested five civilians and confiscated about $28.7 million worth of digital assets. The operation, named “Operation Kypros”, marked the largest seizure of digital assets in the history of Brazil. The local police have reported that they arrested five people after inspecting 15 different locations and executing the largest ever seizure of digital assets in Brazil. The convicted people have engaged in fraud and cryptocurrency scams. One of them was the owner of a bitcoin consultancy that promised investors a return of up to 15% of the invested assets.

Another negative news surrounding the environment of Bitcoin was about massive anti-bitcoin protests in the streets of El Salvador. Only nine days are left until it becomes a legal tender in El Salvador. The President of the country, Nayib Bukele, has been preparing for the day. However, the streets of the country were filled with anti-bitcoin protests against the upcoming law.

Despite promises from Bukele that the bill would prove beneficial for the people and save the country close to $400 million in remittance commissions and guarantee secure financial transactions, the people of the country seem to not agree with him and came out in the streets against the law. This news added extra pressure on BTC/USD prices over the weekend.

Bitcoin (BTC/USD) – Technical Outlook

The major cryptocurrency pair BTC/USD was trading with a negative bias at 47,990 on Monday, having broken through the pivot point support level of 48764. On the downside, the 47,707 level is a new support level for the pair. The breakthrough of the 47,707 support level, on the other hand, opens the BTC/USD pair to support zones of 47,068 and 45,440.

Daily Technical Levels
Support Resistance
47879.4 49685.4
46958.7 50570.7
46073.4 51491.4
Pivot Point: 48764.7

Similarly, a further breakthrough of 45,440 levels exposes the BTC to support levels of 44,850. The breach of the 48,086 resistance level, on the other hand, exposes Bitcoin to the 48764.7 and 49,484 levels. A selling bias is supported by the RSI and the 50 EMA. As a result, the attention should stay on 48,086 because the selling bias is still strong below it and vice versa. Best wishes!

ABOUT THE AUTHOR See More

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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