Technical Analysis

BTC/USD Analysis – Aug 24, 2021

By LonghornFX Technical Analysis
Aug 24, 20214 min

Bitcoin Testing 50K Level

The BTC/USD finished at $49,539.7 on August 23rd, after hitting a high of $50498.8 and a bottom of $49,038.6. On Tuesday, BTC/USD continued its gains and above $50,000 for the first time in 15 weeks, owing to favorable events in the cryptocurrency industry. PayPal has extended its cryptocurrency services to UK consumers as well as US residents. PayPal has announced that it will offer the same option to its UK customers less than a year after releasing a function that allowed Americans to purchase Bitcoin and other cryptocurrencies on its platform.

Through the PayPal platform, qualifying UK clients will purchase, sell, and store Bitcoin and other cryptocurrencies. Apart from Bitcoin, other cryptos such as Litecoin, Ether, and Bitcoin Cash will be available for purchase for as little as 1 British Pound starting this week.

After announcing intentions for global development in late 2020, this was the first foreign extension of its cryptocurrency services. Since then, the company has mostly focused on cryptocurrencies, and it has since expanded its operations to the United Kingdom. BTC/USD rose above $50,000 for the first time in 15 weeks after this announcement.

Meanwhile, on Monday, Substack, an independent web publisher, revealed that it would accept Bitcoin lightning payments. The move will be made in conjunction with OpenNode, a payment processor that provides Bitcoin and Lightning API solutions for businesses.

On the Substack, an email subscription platform, the system OpenNode will support both off-chain and on-chain Bitcoin as well as Lightning payments. As a result, reporters and journalists can now successfully make a living as independent authors using Bitcoin. Nick Inzucchi, a product designer at Substack, is enthusiastic about working with OpenNode because it will allow independent publishers on his platform to take cryptocurrency payments. This news propelled BTC/USD above $50,000 on Monday, putting it under even more positive pressure.

Moreover, Iran has announced that beginning in September, allowing Bitcoin and cryptocurrency miners to resume operations. Previously, the Iranian government prohibited bitcoin mining operations inside the country's borders due to several crackdowns. The decision was intended to dissuade miners from working during the hot summer months because the process was energy-intensive.

The government's energy concerns prompted it to make such a tough move, banning crypto mining operations. But, as of September, the country has chosen to restore crypto mining operations, including bitcoin mining, and this news has pushed BTC/USD higher.

Furthermore, Mat Ishbia, the CEO of United Wholesale Mortgage, stated on Monday that the company plans to begin taking crypto-assets for payment before the end of the year. The University of Wisconsin-Madison would be the first large national mortgage lender to accept bitcoin as a form of payment due to this move. This news pushed the leading cryptocurrency BTC/USD to fresh highs above $50,000 for the first time in 15 weeks on Monday.

On the other hand, Neel Kashkari, President and Chief Executive Officer of the Minneapolis Federal Reserve, stated that Bitcoin and other cryptocurrencies are useless. He went on to say that he was less hopeful about bitcoin than he was five to six years ago because the cryptocurrency was connected with fraud, excitement, noise, and misunderstanding 95 percent of the time. He claimed that there was less or no innovation in the cryptocurrency rather than more fraud. He claimed that cryptocurrency would never compete with or overtake the US dollar as a form of currency.

He even labeled numerous cryptocurrencies as Ponzi schemes and outright frauds that preyed on people's desire to get rich quickly. These harsh remarks from the Federal Reserve Chairman added to bitcoin's weight, resulting in further rises in BTC/USD on Monday.

BTC/USD Intraday Technical Levels

Support Resistance

48893.0 50345.2

48248.8 51151.4

47442.7 51796.5

Pivot Point: 49700.1

BTC/USD - Technical Outlook

The leading cryptocurrency pair, BTC/USD, is trading at the 49,450 level, having rejected the 50500 level. The intraday pivot point level is now supporting the pair at the 49,700 level. On the 1-hourly chart, the BTC/USD has closed a series of Doji candles that are supporting indecision among investors. However, the breakout of the 50,000-48,295 range will help determine further trends in the market.

On the downside, 48,295 is extending strong support today. However, the breakout below this exposes the Bitcoin price towards 47,131 and 46,034 levels. In contrast, the breakout of the 50,500 level exposes the BTC price towards 51,650 and 52,800 support levels. Bullish bias continued to dominate on Tuesday. All the best!


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