Technical Analysis

BTC/USD Analysis – September 23, 2021

By LonghornFX Technical Analysis
Sep 23, 20213 min

Bitcoin Completes 50% Fibonacci Retracement

The BTC/USD reached a high of $43,998.0 and a low of $40,607.0 before closing at $43,582.6. BTC/USD gained support on Wednesday and reversed course after falling for three sessions in a row. Bitcoin recovered almost all of its previous day's losses and turned green due to the market's recent favourable developments.

PayPal, the online payment behemoth, introduced a new app on Wednesday that will offer various financial services, including crypto capabilities, that were previously unavailable on the platform. To introduce the PayPal Savings service, the new app was launched in collaboration with synchrony bank. Other new features include gift card management, QR code payment, and credit access, all from within the same app.

It's also worth mentioning that the new app will allow users to buy, hold, and sell cryptocurrencies. It suggests that the new software will offer the essential features of a cryptocurrency wallet. The value of BTC/USD increased on Wednesday as a result of this news. Meanwhile, Robinhood, a recently public brokerage, revealed on Wednesday that crypto wallets would be added to its app next month, allowing investors to send, receive, and move cryptos in and out of the Robinhood app.

This decision was made in response to numerous concerns from clients who wished to hold the cryptocurrency rather than only have exposure to digital assets. Furthermore, the rising value of cryptocurrencies and the fact that a substantial portion of Robinhood's revenue came from cryptocurrencies influenced the decision. This news boosted BTC/USD even more, as it boosted the entire cryptocurrency market.

Furthermore, the Dfinity Foundation's Internet Computer blockchain revealed that smart-contract capabilities would be added to the Bitcoin network. This could lead to new applications for the world's most popular cryptocurrency.

According to the Dfinity Foundation, the Internet Computer will interact with Bitcoin via its so-called chain key cryptography, paving the path for smart contracts using native BTC addresses hosted directly on the Internet Computer. BTC/USD gained even more on Wednesday as a result of this news.

Furthermore, the recent price drop in Bitcoin caused by Evergrande's issues drove increased buying from El Salvador, pushing BTC/USD prices upward across the board. After bitcoin declined for three consecutive sessions due to fears of Evergrande's collapse, El Salvador saw it as an opportunity and began buying a lot more of the cryptocurrency, helping to boost its prices higher on Wednesday.

BTC/USD Intraday Technical Levels

Support Resistance

41460.4 44851.4

39338.2 46120.2

38069.4 48242.4

Pivot Point: 42729.2

BTC/USD - Technical Outlook

The BTC/USD pair is currently trading with a bullish bias at 44074, with immediate resistance around 44887. Bitcoin confronts heavy resistance on the four hourly timeframes from an upward trend line that has already been breached. The 50-day simple moving average is anticipated to present significant resistance at 46185 levels, while Bitcoin's next obstacle may be found at 48339 levels.

On the downside, Bitcoin is expected to find immediate support at 42733 levels, which is also the level of a daily pivot point. A break below the 42733 level might trigger a strong selling trend that could go till the 41435 and 39283 levels. The top technical instruments, such as the stochastic RSI, indicate that Bitcoin is on a positive trend; hence, the negative bias prevails below 44887, while the bullish bias dominates above 42733. All the best!


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