BTC/USD closed at $43,582.6, after reaching a high of $43,998.0, and a low of $40,607.0. After falling for three consecutive sessions, BTC/USD found support on Wednesday and reversed course. Bitcoin managed to recover almost all of its losses for the previous day, turning green amid the recent positive market developments.
On Wednesday, the online payment giant, PayPal, announced a new app offering multiple financial services that were previously foreign to the platform, including crypto capabilities. The new app has been launched in partnership with Synchrony Bank, to introduce the PayPal Savings service. Other new features include managing gift cards, paying with QR codes and accessing credit within the same app.
It should also be noted that the new app will offer the ability to buy, hold and sell cryptocurrency, which means that the new app will have the basic functionality of a crypto wallet. This news added to the value of BTC/USD on Wednesday. Meanwhile, on Wednesday, Robinhood, a brokerage that went public recently, announced that it was adding crypto wallets to its app next month, to enable investors to send, receive and move cryptos in and out of the Robinhood app.This move was made in response to many complaints filed by clients who wanted to hold the cryptocurrency rather than just having exposure to the digital assets. Furthermore, the rising prices of cryptocurrencies and Robinhood’s revenue, including a large part of the cryptocurrencies, added to the decision. This news also added further to the gains in BTC/USD, as it supported the whole cryptocurrency market. Furthermore, the Internet Computer blockchain of the Dfinity Foundation has announced that it is bringing smart-contract capabilities into the Bitcoin network. This will potentially open the door to new use cases for the leading cryptocurrency.
According to the Dfinity Foundation, the Internet Computer will utilize its so-called chain key cryptography to integrate with Bitcoin. That will pave the way for smart contracts with the native BTC addresses, hosted directly on the Internet Computer. This news also boosted the gains in BTC/USD on Wednesday.
Moreover, the recent price dip in Bitcoin, which was driven by the problems of Evergrande, prompted more buying from El Salvador, which pushed the prices of BTC/USD higher on the board. After Bitcoin fell continuously for three consecutive sessions, amid fears of the collapse of Evergrande, El Salvador looked at it as an opportunity, and started buying a lot more Bitcoin, which helped push its prices to the upside Wednesday.
Bitcoin (BTC/USD) – Technical Outlook
The BTC/USD is trading with a bullish bias at 44,074, facing immediate resistance at 44,887. On the four-hourly timeframe, Bitcoin faces a strong resistance by an upward trendline that has previously been violated. The 50-day simple moving average is likely to provide strong resistance at 46,185, whereas above this, Bitcoin may find the next resistance at 48,339.
Daily Technical Levels
Pivot Point: 42,729.2On the lower side, Bitcoin is likely to find immediate support at 42,733, extended by a daily pivot point level. A breakout below 42,733 could open up an intense selling trend until 41,435 and 39,283. The leading technical tools, like the stochastic RSI, suggest a bullish trend in Bitcoin; therefore, a bearish bias dominates below the 44,887 level, and a bullish bias dominates above 42,733. Good luck!