BTC/USD Analysis – December 24, 2021

Bitcoin Price Prediction 

The BTC/USD was closed at $50,812.0 after a high of $51,376.0 and a low of $48,078.0. BTC/USD rose above $50,000 on Thursday, its highest level since December 8th, amid a generally favorable environment. The CEO of MicroStrategy, Michael Saylor, has provided his expectations for the leading cryptocurrency, Bitcoin, and said that the price of Bitcoin will reach $6 million as it is unstoppable and will replace gold. Saylor has been a bitcoin advocate and believes that BTC should never be sold, as he owns about 17,732 BTC, worth $858 million.

His company, MicroStrategy, has a stash of 122,478 bitcoins worth about $6 billion at the current price. The company acquired the coins at an average price of $29,861 for a cost of about $3.7 billion. According to MicroStrategy, it was the largest publicly traded corporate holder of BTC globally and was also the first public company to adopt bitcoin as a primary treasury reserve asset. The CEO had repeatedly said that BTC would replace gold, as earlier this month, he said that there was a time when gold used to be a desirable store of value, but now bitcoin has taken its place. These comments from Saylor added to the positive sentiment surrounding the Bitcoin ecosystem and pushed its prices higher.

Meanwhile, a new report claims that people in Pakistan have invested a serious amount of money in digital assets in the absence of regulations. According to a report published by the Policy Advisory Board (PAB) of the Federation of Pakistan Chambers of Commerce and Industry (FPCCI), in 2020–21, Pakistanis held cryptocurrency worth $20 billion, allegedly more than one what their central bank has in foreign reserves.

The report suggested that the popularity of digital currencies was increasing rapidly, and the market had grown by about 711% this year as adoption increased. According to Chain analysis, Pakistan holds third place in crypto adoption this year, followed by India and Vietnam. This news also added some positive momentum to the BTC/USD prices as it showed the popularity of cryptocurrencies.

On the flip side, the U.S. SEC rejected two proposals from Valkyrie and Kryptoin to offer bitcoin exchange-traded funds, citing why they failed to meet the standards. The Valkyrie Bitcoin Fund and the Kryptoin Bitcoin ETF Trust did not meet the standard of being designed to prevent fraudulent and manipulative acts and practices and protect investors and the public interest, as per the SEC. This report capped some of the gains in BTC/USD.

BTC/USD Intraday Technical Levels

Support Resistance

48801.4 52099.4

46790.7 53386.7

45503.4 55397.4

Pivot Point: 50088.7

BTC/USD - Technical Outlook 

Bitcoin price created a base and began a new upward trend over the $48,000 barrier. BTC accelerated its rise above the $48,200 mark and the 100 hourly SMA (simple moving average). Moreover, on the hourly chart of the BTC/USD pair, a crucial descending channel with resistance near $48,800 was broken. After rallying above the $50,000 resistance zone, the pair moved into the positive zone. The bulls were successful in pushing the price beyond $50,000.

Bitcoin has reached a high of $51,500 and is now consolidating gains. It is significantly higher than the 23.6 percent Fib retracement line of the latest rise from the $48,105 swing low to the $51,500 high. It also trades significantly beyond $50,000 and the 100 hourly simple moving average. The first large contribution is close to $50,000. It is close to the 50% Fib retracement level of the latest rise from the $48,105 swing low to the $51,500 high. A breach below $50,000 on the downside could enhance selling pressure in the immediate term. The price may fall towards the $48,800 support zone in the aforementioned scenario. All the best!