BTCUSD Weekly Outlook and Bitcoin Fundamentals, 18th September 2021
BTCUSD Forecast and Fundamentals for BTC
Introduction
Indian is ranked the second nation that uses cryptocurrency most compared with other users around the world. Indian brokers are relieved on the news that the government may place a tax on crypto rather than an outright ban on the Indian cryptocurrency.
Indian brokers who use crypto are over 10% of the respondents compared to the global context of the UK and USA who had a lower proportion of 8% and 9% prospectively.
BTCUSD Technical Analysis
Monthly Chart
Monthly Resistance Levels: 65300, 53127
Monthly Support Levels: 40001, 28673.
Some countries have like El Salvador, have adopted bitcoin as legal means of transaction since its parliament passed the bill. This act has attracted Ukraine’s parliaments who are also proposing a bill for the legalization of cryptocurrencies. When the framework is clearly defined, millions of people will be able to trade in Bitcoin.
The market made a new high of 53127 before the recent fall in price. If the selling pressure is strong, we may see the price fall to the 40001 levels.
Bitcoin holders will expect the price to rise from the zone as more whales are adding to their supply distribution of bitcoin. However, if the price should drop lower than the 40001 levels, it may retest the 28673-support zone in the future.
Weekly Chart
Weekly Resistance Levels: 53003, 53394,
Weekly Support Levels: 28603, 42795, 38000
The BTCUSD pair enjoyed 7 weeks of a bullish rally from the low of 29315 to the high of 53394 with about 82.13% gain. The bulls dominated the market before the bears could push back.
The Bears were able to push back the bulls’ gain with about 19.26% from the top of 53003 to the low of 42795. If the selling momentum should continue, the bitcoin price may drop further towards the 38000 levels of support.
Daily Chart
Daily Resistance Levels: 53000, 47500,
Daily Support Levels: 38000, 42000, 42500
The BTCUSD pair saw a massive spike to the south, which took out most of the Indians brokers who were on the uptrend ride. The move could be because of Whales orders being filled by the retail traders who bought them at those resistance zones.
The daily chart shows the pair is still bearish, and the market is in a consolidation state. If the price of bitcoin can close lower than the 42500 zones, the bearish trend may continue.
Indian brokers who which to buy the BTCUSD pair will wait for the price to close above the 47500 zones in anticipation of a rally to the high of 53000 levels for the buying run to continue.
Bullish Scenario:
A bullish scenario cannot be established on the daily chart because the massive spike to the downside of the market has shifted the buying bias to the selling options.
The Bulls will wait for the trend to change if the price can close above the 47500 zones and not close lower than 42500 support.
Bearish Scenario:
The trend favor sellers and the selling pressure is still holding the market sentiment across the daily chart. If the bearish rally must continue, the BTCUSD price must close lower than the support level of 42500.
Bitcoin BTC News Events
INDIANS PLANS TO REPLACE GOLD WITH DIGITAL ASSETS
The Indian festival season is coming soon. During the event, they choose gold as an article for their celebration and gifts. Indian brokers have over 7 million users who have pumped over $1 billion into cryptocurrencies since the government allows the Fintech space to flourish in India.
Different crypto exchanges are using the platforms during this festive season to give away some cryptos to entice retail traders. Through this means the awareness to encourage Indian users to accept Bitcoin over the traditional gold is emphasized. Exchanges like CoinDXC, Unocoin, and WazirX are the prominent promoters of the acceptance of bitcoin during the festive season.
TAX a better option than BAN!
An ET report says that the Indian government is considering Tax on crypto transactions and exchanges rather than an outright ban. This step is a relief for the Indian cryptocurrency ecosystem because they had been in the dark concerning regulations.
According to the former deputy Governor of the central bank Rama Gandhi, he sees cryptocurrencies as an asset class or commodity which can be subjected to the existing laws of the country once it becomes a mainstream that can be used for payments of services and purchasing of goods.
The Indians crypto ecosystem has been striving for new highs, as it is ranked the second country in terms of crypto adoption in the world. Another report recent shows that the crypto investment of Indians rose above 19000% last year during the COVID-19 saga during the bull’s peak season of crypto.
Gandhi Rama also wants the lawmakers to provide a clear picture regarding the asset class to the public. He says that all the commodities should not be seen as currencies, irrespective of the speculations and noise around them.
Conclusion and Projection
The BTCUSD favours a bearish pattern and we may see the price drops at the close of 42500 levels on the daily chart.
The Indian economy is on the recovery part as different sectors are showing gradual recovery progress. However, a recent threat is the COVID-19 vaccine supply that some analysts say that if the workforce is not inoculated fast, the rise of the virus will disrupt the economy.
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