Bitcoin Losses $1,075 (2.23%) – A Quick Trade Plan
The BTC/USD closed at $47,008.0 after placing a high of $48,915.7 and a low of $46,904.0. BTC/USD continued with its bearish streak for the
Arslan Butt•Tuesday, August 31, 2021•2 min read
The BTC/USD closed at $47,008.0, after placing a high of $48,915.7, and a low of $46,904.0. BTC/USD continued with its bearish streak for the third session, dropping on Monday, amid the recent sell-off in the cryptocurrency market.
The Bitcoin prices declined on Monday, after the citizens of El Salvador took to the streets to protest against the upcoming Bitcoin Law, which is set to take full effect on September 7. After that date, all economic agents in the country will be expected to accept Bitcoin and the dollar as a means of payment.
Nayib Bukele – new legislation to save $400 million
The President of El Salvador, Nayib Bukele, has stated that the new legislation will benefit the people and save the country about $400 million in remittance commissions. He also said that the law would guarantee quick and safe financial transactions.
However, hundreds of protesters took to the streets to express their disapproval of the law, despite the supposed benefits. Most of the demonstrators were workers, pensioners and veterans, who highlighted the concerns related to the volatility and instability of Bitcoin. This news put pressure on the BTC/USD prices on Monday.
Meanwhile, a billionaire portfolio manager, John Paulson, has openly criticized the volatile nature of cryptocurrencies. He advised interested investors to opt for traditional investment assets like gold, rather than Bitcoin. Paulson claimed that cryptocurrencies have a limited supply of nothing and no intrinsic value. He discouraged investment in cryptocurrencies and cited the heightened volatility of the assets as the reason. These negative comments by a billionaire portfolio manager added to the decline in the prices of BTC/USD on Monday.
Bill Gurley Shares his View on Cryptocurrencies
Venture capitalist, Bill Gurley, a partner at Benchmark, a Silicon Valley venture capital firm in San Francisco, California, has shared his view on cryptocurrencies. He admitted that he was late getting into crypto, because he hadn’t spend much time investigating the subject. He said that he did a lot of research and decided to opt for Ethereum instead of bitcoin.
The venture capitalist said that it was his own investment, that had nothing to do with his firm, and he even refrained from specifying the total invested amount in ETH. This put additional pressure on the Bitcoin prices, increasing the losses in the BTC/USD on Monday.
Bitcoin – BTC/USD – Technical Outlook – Major Resistance at 47,600
The leading cryptocurrency, BTC/USD, is trading with a negative bias at the 47,166 level on Tuesday, having broken through the pivot point support level of 47,600. On the downside, the pair is testing another level of support at 46,267. The breach of the 46,267 support level, on the other hand, opens the
BTC/USD pair to support zones of 45,531 and 44,207.
Daily Technical Levels:
Support Resistance
4,6302.7 4,8314.4
4,5597.5 4,9620.9
4,4290.9 5,0326.1
Pivot Point: 4,7609.2Furthermore, a breach of the 44,207 level would open the
BTC to support levels of 43,050. A break of the 47,600 resistance level, on the other hand, would expose Bitcoin to the 48,327 and 49,650 levels. The
RSI and 50 EMA both point to a sell signal. The emphasis should remain on 47,600, as there is still a strong selling bias underneath this level and vice-versa. 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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