- Bitcoin placed a new high around $40,930 and started showing correction below the $40,000 resistance level.
- Genesis Digital Assets raises $125M to expand Industrial-Scale Bitcoin mining.
- Bitcoin traders may look for a bullish trade above the $40K level with an initial target of $41,500 and $43,350
The BTC/USD pair extended its previous-day upward rally to trade near the $40,000 level versus the U.S. Dollar. Bitcoin price forecast remains bullish, and it’s likely to soar until the $40,500 and $41,000 mark in the short term.
Bitcoin Bullish Bias Dominates – Quick Price Review
During the week, the BTC/USD started a fresh rise from the $36,500 support zone. BTC remained well bid above the $39,000 level, and it gained pace above the $39,500 level. Early today, Bitcoin tried to break above the $40K resistance level but failed to violate it.
Genesis Digital Assets Raises $125M to Expand Industrial-Scale Bitcoin Mining.
The rumors from Amazon mainly sponsored the ongoing bullish bias in the BTC prices. Amazon will accept Bitcoin (BTC) as payment on its platform by the end of 2021. However, the CEO of Amazon neglected these rumors. Apart from this, the BTC prices got some additional lift right after the Genesis Digital Assets raises $125M to expand industrial-Scale Bitcoin mining.
One of the biggest industrial-scale Bitcoin mining operators globally, Genesis Digital Assets, announced on July 28 that it had raised $125 million. This equity is raised to support “aggressive expansion plans.”
The round comes from the U.K.-based private equity fund Kingsway Capital. The fund is focused on emerging markets with over $2 billion in assets under management. This latest progress tends to leave a positive impact on the BTC prices.
Bitcoin on a Bullish Run – Dollar’s Weakness Boost BTC/USD Demand
The broad-based U.S. dollar weakness played a significant role in underpinning the BTC/USD pair. At the USD front, the broad-based U.S. dollar failed to stop its early morning bearish performance and remained in selling.
FOMC announced its monetary policy decision and delivered an optimistic tone. Fed acknowledged that the economy has progressed towards maximum employment and price stability goals.
However, the Fed Chair Jerome Powell took a dovish turn at the post-meeting press conference. So, the declines in the U.S. dollar were seen as one of the critical factors that help the BTC prices to cap their losses.
BTC/USD Daily Chart
Bitcoin Price Forecast – Daily Technical Analysis: Fibonacci Retracement in Play
Bitcoin price forecast remains slightly bullish above $38,200 support level that’s been extended 38.2% Fibonacci retracement level. On the higher side, the BTC/USD pair faces immediate resistance at a psychological trading level of $40,000. Bitcoin hasn’t been able to break above this level, despite giving a couple of tries.
It looks like it’s going to close a Doji candle below $40K, and once this happens, the chances of a bearish correction will be high. Therefore, I have applied the Fibonacci tool up there. Failure to violate the $40K level can drive bearish retracement until 23.6% Fibo retracements at the $38,200 level.
Whereas, a breakout of 38.2K level can extend selling until 38.2% Fibo level of $36,400 level. Bitcoin placed a new high around $40,930 and started showing correction below the $40,000 resistance level. There are further chances of upside momentum upon an upside break above the $40,200 resistance zone.
The next significant resistance is near the $40,800 and $41,000 levels. A close above $41,000 could trigger a sharp rise towards the $42,000 level. In contrast to this, the BTC prices could start another downside correction if it fails to rise above the $40,200 and $40,500 resistance levels. Initial support on the downside is near the $39,400 level.
Forex trading market participants may look for a bullish trade above the $40K level with an initial target of $41,500 and $43,350. Alternatively, sell trades can be taken below the $40,000 level to target $38,500. All the best!
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