- International Monetary Fund’s (IMF) managing director Kristalina Georgieva spoke about El Salvador’s adoption of Bitcoin.
- BTC/USD is trading near $39,696.57 with a twenty-four-hour trading volume of $25,957,542,679.
- Forex trading market participants may look for placing a buy limit at $38,150 level with an initial target of $40,400 and $42,650.
On Monday, the BTC/USD failed to extend its previous week’s upward rally and dropped around below the $40,000 level. The BTC/USD pair started a downside correction from the $42,600 zone against the U.S. Dollar. Bitcoin price forecast remains bearish, and BTC might extend losses towards $38,500.
Bitcoin (BTC/USD) – Quick Price Review
During the past week, the BTC price extended its bullish trend above the $42,000 resistance level. It even rose above the $42,500 resistance level and settled above the 100 hourly simple moving average. However, the rally started to stumble Sunday. Bitcoin price faced some hurdles above the $42,600 level.
A high was formed near $42,629 before the price started a downside correction. There was a break below the $41,200 and $40,500 support levels. BTC even broke the $40,000 support level and the 100 hourly simple moving average. The BTC prices could continue to fall if it fails to climb above the $40,000 and $40,500 resistance levels.
At the moment, the BTC/USD is trading near $39,696.57 with a twenty-four-hour trading volume of $25,957,542,679. It has dropped by 4.91% in the last twenty-four hours.
Amazon Underpinned Bitcoin Prices, But Not Anymore
The downticks in the BTC/USD coin pair could be short-lived as the crypto community is going wild at the start of this week after rumors circulated that Amazon was preparing to accept BTC payments. This rumor has been playing a major role in supporting the BTC Prices.
These rumors came after Amazon posted a job opening for a digital currency and blockchain product lead on July 22. Four days later, an unknown source within Amazon stated London business newspaper City A.M. that the e-commerce giant was preparing to begin receiving Bitcoin (BTC) payments by the end of 2021.
International Monetary Fund Remarks about El Salvador
On the negative side, the International Monetary Fund’s (IMF) managing director Kristalina Georgieva spoke about El Salvador’s adoption of Bitcoin. She said it might cause the country’s difficulty in financial planning at the household, enterprise, and national levels risks. These remarks bring some uncertainty among the BTC investors, which may push the BTC prices further down.
Bitcoin on a Bearish Run Despite Weakness in Dollar
On the USD front, the broad-based U.S. dollar failed to stop its early-day downward rally. It’s still flashing red on the day as the market’s upbeat mood tends to undermine the safe-haven dollar. Even the previously released upbeat U.S. data failed to boost dollar prices, at least for now.
The investors held tight with their existing positions as we enter this week. On Friday, investors focus on the most highlighted monthly U.S. jobs data and a critical Australian central bank decision. Thus, the losses in the U.S. dollar were seen as one of the critical factors that help the BTC prices to limit their losses.
BTC/USD Daily Chart
Bitcoin Price Forecast – Daily Technical Analysis: Upward Channel Breakout
Bitcoin price forecast remains bearish below the $40,400 resistance level. On the 4-hour chart, the BTC/USD pair has violated the upward channel that’s supported its prices at the $40,400 level. Since this level has already been violated, we may see a continuation of a bearish trend in Bitcoin.
On the lower side, a continuation of a selling trend can lead Bitcoin price towards the next support level of $38,150 level. The further bearish trend in Bitcoin and breakout of $38,150 can drive additional sell until the $36,556 support level.
Daily Support and Resistance
S3 33886.77
S2 37060.07
S1 38948.63
Pivot Point 40233.37
R1 42121.93
R2 43406.67
R3 46579.97
The oscillator indicator like Stochastic RSI is holding at 3.98 in the oversold zone. Typically it signals the sellers are exhausted, and bulls may starting taking buying trades. However, it’s best to wait for the market to test and close above the $38,150 level before entering a buying position.
Forex trading market participants may look for placing a buy limit at $38,150 level with an initial target of $40,400 and $42,650. Alternatively, sell trades can be taken below the $40,450 level to target $38,150. All the best!
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