Bitcoin Breaks Below 45,760 Level – Downward Trendline in Play

On Sunday, the BTC/USD exchange rate was 46,069.0, with a high of $46,391.0 and a low of $44,780.1. BTC/USD extended its gains on Sunday, rising for the second consecutive session, amid positive environmental developments.

The recent move by El Salvador, to make Bitcoin legal tender, has prompted other countries to follow the growing trend of legalising crypto. El Salvador was the first country to adopt Bitcoin as a secondary currency, and just two weeks ago, Cuba passed legislation to recognise and regulate cryptocurrencies, in response to increased socioeconomic interest. Panama has also reported that it is drafting new cryptocurrency regulations.

The latest country to join the list of adopters of Bitcoin and cryptocurrencies was Ukraine. The Parliament of Ukraine passed a law to legalise cryptocurrency. Reports suggest that a new cryptocurrency-related bill, that will allow digital asset payments, is being prepared by Parliament for the second reading.

On Wednesday last week, the Ukranian Parliament adopted the draft law and legally recognized the cryptocurrency in the country for the first time. The law will enter into force after amendments have been made to the country’s tax code, with regard to the taxation of cryptocurrency transactions. This news has been supporting the BTC/USD prices, and it has played a role in its rise.

The Bitcoin mining giant, Argo Blockchain, has secured another loan agreement from Galaxy Digital LP, to pursue further operational expansion. The London Stock Exchange announced that the new bitcoin-backed loan agreement was to the tune of 18.05 million pounds. In June, the Argo entered into a previous BTC-backed loan agreement with Galaxy Digital for $20 million. Both loans combined add up to $45 million.

Furthermore, two Virginia-based public pension funds, the Fairfax County Police Officers Retirement System and Fairfax County Employees’ Retirement System, were willing to invest $50 million in an investment fund that provides Bitcoin offerings, along with other crypto derivatives. Most of both funds will be invested in blockchain firms, and only 15% will go into cryptocurrencies. However, this was still a piece of favourable news for digital assets, which helped BTC/USD to surge on Sunday.

Meanwhile, according to a survey conducted by Sherlock Communications, about half of all Brazilians agree that the country should follow in the footsteps of El Salvador, and adopt Bitcoin as legal tender. The primary reason behind this poll result was attributed to protection against inflation and financial instability in the country.

Another favorable report was that customers of the UK Post Office can now make in-app Bitcoin purchases, as the post office has announced a partnership with German-based crypto exchange, Swarm Markets. This partnership will allow users to verify their identities through the Post Office Easy ID app, in order to directly access and purchase cryptocurrencies from Swarm’s website.

Bitcoin is trading at around 44,700 on Monday, with a bearish tendency. BTC/USD is acquiring immediate support to the downside at 44,212, and a bearish crossover beneath this level could reveal the subsequent support level of 43,300. Furthermore, if the 43,308 level is broken again, Bitcoin prices may be exposed to the following support level of 41,906.

Bitcoin has breached the pivot point mark of 45,601 in the 4-hour timeframe. This pivot point level is currently acting as a significant resistance level for Bitcoin. The breakthrough at the 45,614 level, on the other hand, exposes Bitcoin prices to the next resistance level at 46,518.

 

Support           Resistance
45,102.4          46,713.3
44,135.8          47,357.6
43,491.5          48,324.2
Pivot Point:    45,746.7Furthermore, a break above the 46,518 level opens Bitcoin prices to the next double top resistance mark of 47,902, which is the following double top resistance level. Leading technical indicators, such as the RSI, are currently in a selling zone, as is the 50-day SMA. It indicates a bearish inclination today, particularly below 45,614 and vice versa. Good luck!