Bullish Engulfing Pattern to Support at 44,496
After hitting a high of $47,157.0 as well as a low of $44,467.0, the BTC/USD was finished at $44,698.0. On Tuesday, BTC/USD fell for the fourth time in a row, owing to certain negative developments in the Bitcoin market. Fitch Ratings, one of the world's top financial rating organizations, previously warned El Salvador against accepting Cryptocurrency as legal cash. The agency voiced concerns that digital assets may expose the Latin American nation to systemic threats.
The credit rating agency asserted that adopting bitcoin legal tender without further clarification could increase volatility and operational hazards for the country's citizens. The agency underlined the volatility & operational hazards associated with the cryptocurrency ecosystem and warned of their impact on residents, citing the lack of transparency in the country's deployment of BTC in emerging economies.
El Salvador's move, according to Fitch Ratings, will have a negative effect on insurance firms because the country's parliamentary assembly passed the Bitcoin Law in early June, requiring merchants and enterprises to take bitcoin in exchange for products and services. It implies that if policyholders choose to pay the premiums in bitcoin instead of cash, the insurer will be exposed to price volatility if they keep bitcoins on their balance sheet for just an extended time.
He went on to say that insurance businesses made up around 21% of El Salvador's total capital last year. And the country's insurance sector will be disrupted by the controversial Bitcoin Law, which is set to take effect on September 7. This warning from Fitch, a well-known rating firm, adds to the negative pressure on Bitcoin prices on Tuesday, dragging BTC/USD lower.
Powerbridge Technologies, on the other hand, saw its stock rise by 14% in a single day after acquiring a set number of bitcoin and Ethereum miners and creating and managing to mine in Asia and North America. Their ambitions to engage in cryptocurrency mining boosted the stock's valuation and enhanced the cryptocurrency market environment, causing BTC/USD to drop further on Tuesday.
Meanwhile, the rising strength of the US dollar contributed to a loss in BTC/USD on Tuesday, as the greenback gained strength amid rising safe-haven appeal in the market as a result of increased geopolitical risks and faded economic recovery optimism. The rapid rise of coronavirus infections despite vaccination initiatives, as well as increased geopolitical uncertainty as a result of the collapse of the Afghan government, bolstered the greenback's safe-haven position. Because both have a negative correlation, the rising strength of the US dollar added to the loss in BTC/USD.
BTC/USD Intraday Technical Levels
Support Resistance
43724.4 46414.4
42750.7 48130.7
41034.4 49104.4
Pivot Point: 45440.7
BTC/USD - Technical Outlook
On Wednesday, the BTC/USD is trading with a bullish bias at the 45,266 level. However, the intraday pivot point is going to extend resistance at the 45,518 level. Below this, the BTC/USD’s immediate support stays at 44,450 and 43,920. Whereas, the breakout below the 43,920 level exposes the leading crypto pair towards 42,898 and 41,301 support levels.
The breakout of the 45,518 resistance level exposed the BTC price towards 46,540 and 47,116 levels today. The BTC/USD has formed a tweezer’s bottom pattern on the 4-hourly chart. That suggests the chances of a bullish trend in Bitcoin. Let’s keep an eye on the 45,518 level today as selling bias dominates below this level and vice versa. All the best!
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