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BTCUSD Weekly Outlook and Bitcoin Fundamentals, 27th August 2021

BTCUSD Forecast and Fundamentals for BTC

Introduction

Some weeks ago, we saw how IQ Option broker welcomed the digital introduction of its own coin as more countries are embracing blockchain technology. This step is to plan against inflation and other uncertainties in the future and the economic activities going on in the country.

BTCUSD Technical Analysis

Monthly Chart

BTCUSD monthly chart -26th August 2021

Monthly Resistance Levels: 65180, 60000

Monthly Support Levels: 47078, 28657, 41680

The recent waves of the delta variant are of concern to the Indian brokers as the COVID-19 vaccines are not sufficient for the masses and the Indian economy is struggling to overcome the economic challenges it has faced since the first pandemic.

During the past weeks, we can see that the bitcoin price has been growing stronger gradually having taken out the previous resistance level of 41860 turned into a support zone.

If the bullish momentum should continue, we may see the price rise higher towards the 60000 levels. If the Bulls break above the zone, we shall see a new ATH established.

However, the 60000 may be short position and traders with orders waiting to be triggered for a sell option in the future.

Weekly Chart

BTCUSD weekly chart - 26th August 2021

Weekly Resistance Levels:  65180, 60000, 51842

Weekly Support Levels:  41043, 28975.

The bitcoin price is hitting a resistance zone of 51842 and the Bulls will have to close above the one before reaching the next resistance of 60000 on the weekly chart. If the price of bitcoin cannot go through the zone, we may likely see the price falling back towards the 41043 zone. If the selling momentum should go lower than the zone, we may see the price retest the 28975 level that the recent bullish swing started from. 

A close below the low will bring in more sellers into the market. However, if the buyers can establish the support zone and price cannot close below the 41043 levels, we may get a bounce from the level that will probably breakout above the 51842 zone for the buyers to push the price higher.

Daily Chart

Daily Resistance Levels: 60000, 51842, 65180, 50433

Daily Support Levels: 29323, 37046, 43568

The Indian brokers have made a bullish run on the BTCUSD pair when they dominated the market from the support level of 29323. BTCUSD pair made series of highs and higher lows and made about 70% gain from low to the high of 50433 at the writing of the report. 

The Bulls will need to take the price higher and above the 50433 level if they want the rally to continue. Likewise for the short position traders, they will have to close below the various support levels if they have to continue the bearish trend on the higher time frame.

Bullish Scenario:

The Bullish from the 29495 zone shows strong momentum for the buyers and if price should continue to find another support at the 43568 zone, we may see bitcoin price rise above the 51842 level for the trend to continue.

Bearish Scenario:

The sellers are trying to dominate the market from the 51842 zones. If they must control the market, sellers have to push back the price below the 43568 and 29495 zones so that the bearish swing may continue.

Bitcoin BTC News Events

MicroStrategy gains More Bitcoin:

The CEO of the US-based NASDAQ listed business intelligence company states that the firm has purchased over 3800BTC recently and now has over 100000 bitcoins in total. They did the recent purchase at the average price of $45294 per BTC before the $50000 mark. 

Michael Saylor revealed his plan earlier in July to acquire more bitcoin despite the impairment loss of Q2 2021. He does not have any intention of selling the coin, even the market price should drop. The recent purchase was done as a result of the proceeds gotten from the ATM facility sales and the bitcoin accumulated by the business is around $177miliion.

Would the SEC Approve Bitcoin EFTs?

Recently, the Ether EFT withdrawals by VanEck and ProShares are good signs for the bitcoin EFTs’ futures as they may soon be approved according to Eric Balchunas senior EFT strategist with Bloomberg. Should the bitcoin EFT futures be launched, and gets the SEC’s approval, the exchange-traded fund is also launched about 75 days later. He believes that the most probable EFT to be launched is the one filed by ProShares.

Usually, under the 1940 investment Company Act that the agency chairman required (Gray Gensler) several bitcoin EFTs were filed. Under this act, it ensures substantial protection for investors. The companies under the act are Mike Novogratz’s Galaxy Digital. Invesco and VanEck.

Conclusion and Projection

Recently, the USA Drug and food agency approved the COVID-19 vaccines made by Pfizer and the President has announced that business owners and individuals who are 16 years and above can take the jab. The US military has plans to vaccinate all their personal with the approved vaccines. The more corporate organization is buying bitcoin and plans to hold it for long and such company like MicroStrategy have over 100000 bitcoins.

Some analysis believes that the bitcoin price will still crash lower towards the 24000 level before another bullish run which some investors, wheals, and Indian brokers are hoping to buy bitcoin from its dip. 

 



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