BTCUSD; Where to next?
Brief Technical Analysis:
According to the Daily, Btcusd had been consolidating around the 50k zone before it declined to a newly recorded low of $28,970.
In essence, sellers entered the market at approximately the 64k zone as they were eager to short on May 12th 2021, following Musk's tweet expressing that the electric carmaker had allegedly suspended vehicle purchases using bitcoin, as he anticipated environmental concerns with the Cryptocurrencies computational “mining” process. This was ultimately detrimental to the price level of the coin as not only did it mean that Elon's tweet wiped over $300 Billion from the Crypto, but it also intensified the selloff amid fears of the currency's value.
In the process of recovery where the price did not manage to fall below the $28,000 support level, some bullish momentum began to pick up as it rallied approximately 15%, providing buyers with a redeemable entry opportunity.
Price further spiked to reach resistance at $40,720, where some CEOs of major tech giants had expressed their enthusiasm for Bitcoin. This eventually unleashed some additional bullish momentum as it broke the resistance level causing a broader audience to buy into the market.
Furthermore, a second resistance level was established when sellers failed to maintain their shorts, and buyers sought to outpace them in the market as the coin continued to surge.
It is currently floating above a vital support level where we could potentially see the Crypto heading upwards at a faster pace before the market corrects once again.
Fundamental Analysis:
BTCUSD has been quite an indecisive instrument over the past few months.
It has projected a 52-week price range of between 9,891 (Low) - 64,788 (High), as it fluctuates in accordance to various market conditions. Expectedly, it had also encountered some fundamental support prior to its bullish run by the Tweet Artist Elon, who is the founder of one of the major EV companies Tesla, as he influenced some of the crypto's major price movements.
In this instance, some people may perceive the Cryptocurrency to not be as robust in overcoming some fundamental sensitivity however, it has indeed experienced some vast sell offs due to pessimism about its future as it competes with some newcomers.
Despite some talk regarding the rise of other Cryptocurrencies attempting to gain some hype in the market, Bitcoin is still amongst the top including Ethereum, Litecoin, and Ripple.
However, one ideology concerning its survival within the market is supported by the skepticism in some audience regarding its present bullish run, that may not last as long as anticipated due to the severe volatility associated with the coin.
This questions its future price level considering that individuals would hover towards other less volatile coins to exchange with, so that the risk of it becoming a liability for them in future is drastically lessened.
Moreover, in defiance of some of the other major tech company CEO's such as twitter founder Jack Dorsey who currently vows for the Cryptocurrency, many major institutions such as MasterCard, UBS, and JP Morgan, have been injecting funds of up to $65 Million Dollars to support a Start-up endorsing Ethereum, as one of the other major Crypto players.
Another factor to take into consideration is the future rise of CBDCs, also recognised today as Central Banking Digital Currencies.
At present, Cryptocurrencies including Bitcoin, Ethereum, Litecoin, Ripple, and Stellar may be stealing the spotlight however, Central Bank Digital Currencies aren’t too far away from the implementation process. The problem with decentralised virtual currencies is that they fluctuate too often and are extremely volatile, which makes it inconvenient for commercialising with different methods of transaction as well as price setting for goods and services, providing that its severe volatility correlatedly promotes a presumptuous inflationary gap.
To summarise, in order for Bitcoin to gain the people's assurance of its stabilisation as a dominating decentralised method of exchange, the implementation of some sort of Price floors and ceilings is vital for its long-term role as a trusted Cryptocurrency that individuals can rely on during any point in their lives.
According to the Daily, Btcusd had been consolidating around the 50k zone before it declined to a newly recorded low of $28,970.
In essence, sellers entered the market at approximately the 64k zone as they were eager to short on May 12th 2021, following Musk's tweet expressing that the electric carmaker had allegedly suspended vehicle purchases using bitcoin, as he anticipated environmental concerns with the Cryptocurrencies computational “mining” process. This was ultimately detrimental to the price level of the coin as not only did it mean that Elon's tweet wiped over $300 Billion from the Crypto, but it also intensified the selloff amid fears of the currency's value.
In the process of recovery where the price did not manage to fall below the $28,000 support level, some bullish momentum began to pick up as it rallied approximately 15%, providing buyers with a redeemable entry opportunity.
Price further spiked to reach resistance at $40,720, where some CEOs of major tech giants had expressed their enthusiasm for Bitcoin. This eventually unleashed some additional bullish momentum as it broke the resistance level causing a broader audience to buy into the market.
Furthermore, a second resistance level was established when sellers failed to maintain their shorts, and buyers sought to outpace them in the market as the coin continued to surge.
It is currently floating above a vital support level where we could potentially see the Crypto heading upwards at a faster pace before the market corrects once again.
Fundamental Analysis:
BTCUSD has been quite an indecisive instrument over the past few months.
It has projected a 52-week price range of between 9,891 (Low) - 64,788 (High), as it fluctuates in accordance to various market conditions. Expectedly, it had also encountered some fundamental support prior to its bullish run by the Tweet Artist Elon, who is the founder of one of the major EV companies Tesla, as he influenced some of the crypto's major price movements.
In this instance, some people may perceive the Cryptocurrency to not be as robust in overcoming some fundamental sensitivity however, it has indeed experienced some vast sell offs due to pessimism about its future as it competes with some newcomers.
Despite some talk regarding the rise of other Cryptocurrencies attempting to gain some hype in the market, Bitcoin is still amongst the top including Ethereum, Litecoin, and Ripple.
However, one ideology concerning its survival within the market is supported by the skepticism in some audience regarding its present bullish run, that may not last as long as anticipated due to the severe volatility associated with the coin.
This questions its future price level considering that individuals would hover towards other less volatile coins to exchange with, so that the risk of it becoming a liability for them in future is drastically lessened.
Moreover, in defiance of some of the other major tech company CEO's such as twitter founder Jack Dorsey who currently vows for the Cryptocurrency, many major institutions such as MasterCard, UBS, and JP Morgan, have been injecting funds of up to $65 Million Dollars to support a Start-up endorsing Ethereum, as one of the other major Crypto players.
Another factor to take into consideration is the future rise of CBDCs, also recognised today as Central Banking Digital Currencies.
At present, Cryptocurrencies including Bitcoin, Ethereum, Litecoin, Ripple, and Stellar may be stealing the spotlight however, Central Bank Digital Currencies aren’t too far away from the implementation process. The problem with decentralised virtual currencies is that they fluctuate too often and are extremely volatile, which makes it inconvenient for commercialising with different methods of transaction as well as price setting for goods and services, providing that its severe volatility correlatedly promotes a presumptuous inflationary gap.
To summarise, in order for Bitcoin to gain the people's assurance of its stabilisation as a dominating decentralised method of exchange, the implementation of some sort of Price floors and ceilings is vital for its long-term role as a trusted Cryptocurrency that individuals can rely on during any point in their lives.
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