BTC Violates Yesterday’s High at 46,856
• El Salvador's central bank, the Banco Central de Reserva (BCR), has released a draft regulation for financial institutions.
• BCR's move bolstered BTC/USD prices, pushing them higher on Thursday.
• Bitcoin’s bullish bias remains dominant above 46,850 and vice versa.
The BTC/USD reached a high of $47,060.0 as well as a low of $43,992.0 before closing at $46,765.0. After falling for five straight sessions, BTC/USD reversed course on Thursday, recouping some of its prior losses.
Wells Fargo, a US global banking behemoth, has applied to the Securities and Exchange Commission to launch a bitcoin fund. With the help of FS Investments and New York Digital Investment Group, this program was launched. FS NYDIG Bitcoin Fund, LP will be the name of the fund. This news boosted market sentiment, thus driving the BTC/USD exchange rate higher.
Another piece of market news that contributed to the rise in BTC/USD prices was Coinbase's latest cooperation with one of Japan's top banks. Coinbase has announced a new cooperation with Mitsubishi UFJ (MUFG) Financial Group to begin in Japan. This move will allow MUFG's 40 million account holders to instantly access Coinbase and begin purchasing Bitcoin.
According to Nao Kitazawa, CEO of Coinbase Japan, the goal was to reach out to a wide range of clients and provide them with low-barrier services. Customers in Japan will be able to acquire bitcoin right away through the Coinbase platform due to the program. Coinbase will face competition from 30 other companies licensed to trade cryptocurrency in Japan, according to Bloomberg. On Thursday, the price of BTC/USD increased as a result of this news.
On Thursday, the price of BTC/USD increased as a result of this news. Furthermore, JPMorgan Chase, one of the country's largest financial institutions, has apparently suspended all Compass Mining account activities. Compass Mining is a bitcoin mining firm situated in Delaware, and its CEO, Whit Gibbs, revealed the news. No further details have been released by either party, leaving the market in limbo, and the news had little to no influence on BTC/USD values on Thursday.
On the other hand, El Salvador's central bank, the Banco Central de Reserva (BCR), has released a draft regulation for financial institutions and other banks interested in providing bitcoin-related services. On Tuesday, the BCR released a paper with recommendations for banks, corporate banks, and savings and credit societies that want to offer bitcoin and dollar digital wallet services. These financial firms must seek authorisation from the central bank to provide such services, according to the draught regulations.
Applicants will also be expected to provide risk management procedures for the financing of terrorism, laundering, and cybersecurity concerns. The bitcoin-to-dollar and conversely services will cost money and will not be supplied for free. Despite warnings from the IMF, World Bank, and other regulatory bodies, this regulatory guidance signaled that the country was pressing forward with its decision to make bitcoin legal tender. BCR's move bolstered BTC/USD prices, pushing them higher on Thursday.
BTC/USD Intraday Technical Levels
Support Resistance
44848.0 47886.0
42871.0 49007.0
41750.0 50954.0
Pivot Point: 45939.0
BTC/USD - Technical Outlook
The leading crypto currency pair, BTC/USD, is trading with a bullish bias at the 47,046 level. The pair has violated the pivot point resistance level of 45,771. On the support side, the BTC/USD’s immediate support prevails at 46,800 and a breakout below this level exposes the pair towards 45,771 and 44,685 levels.
On the other hand, the breakout of the 47,620 resistance level exposes the Bitcoin towards 48,714 and 50,571 levels. The Stochastic indicator supports a bullish bias in Bitcoin. However, the major focus will remain on the 46,856 support level. The bullish bias remains dominant above 46,850 and vice versa. All the best!
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