Bitcoin Reclaims $50k High as Bitcoin Gathers Momentum – August 23, 2021
Today, Bitcoin bulls have broken above the $50,000 psychological price level as Bitcoin Gathers momentum. The bullish momentum is expected to reach the high of $51,000. However, buyers may face stiff resistance at the recent high. Can the bulls sustain the bullish momentum? However, the upward move is doubtful as the price indicators have shown that Bitcoin is trading in the overbought region of the market.
Resistance Levels: $50,000, $51,000, $52,000
Support Levels: $40,000, $39,000, $38,000
After two unsuccessful attempts at the $50,000 price level, the overhead resistance is broken as Bitcoin gathers momentum. Buyers have to sustain the bullish momentum above the $50,000 high. This will enable Bitcoin to rise to the $51,000 price level. Nonetheless, the bulls will encounter stiff resistance at the $51,000 high. In the same vein, if the bulls overcome the $51,000 high, the BTC/USD will reach the high of $55,000. Conversely, if BTC/USD turns away from the $50,000 high, Bitcoin will fall to the next support at $48,000. Subsequent falls will follow if the bulls lose the $48,000 support. Meanwhile, Bitcoin is at level 70 of the Relative Strength Index period 14. Also, it is above the 80% range of the daily stochastic. According to the price indicators, Bitcoin has not enough room to rally on the upside.
Brazil’s Central Bank President Approves Crypto Regulation
Brazil’s Central Bank President, Roberto Campos Neto has approved crypto regulation as the country evolves in the market. In an online event organized by the Council of the Americas, Roberto Campos Neto, shared his views on transparent payments networks, the country’s central bank digital currency project, and crypto regulation. He also discussed with Brazil’s Securities and Exchange Commission, how to welcome cryptocurrencies into the regulatory setting. According to him : “The financial market is changing so much that it’s all becoming data. We need to reshape the world of regulation. Brazilian regulators are recognizing the maturation of the crypto market and understanding that it is important to offer regulated products to investors looking forward to exploring these new asset classes.”
Meanwhile, BTC’s price has broken above the $50,000 resistance as price consolidates above it. Buyers are attempting to sustain the bullish momentum above the recent high. Meanwhile, on August 21 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that BTC will rise to level 1.272 Fibonacci extension or level $51,350.20.
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