If in mid-July the price of Bitcoin was $30000, then today the price of Bitcoin is already $46000. That is, in less than a month, the price of Bitcoin increased by $16000, or 56%. Fundamental data has a positive effect on Bitcoin, helping it to rise in price. Congress is taking the first steps towards regulating cryptocurrencies in the United States.
The so-called infrastructure law defines some market participants as brokers who are taxed. In the fall, this bill will be considered by the House of Representatives of the Congress. It was this factor that accelerated the change in sentiment among traders.
This week Walmart began looking for someone to spearhead the company’s cryptocurrency initiatives. Walmart’s entry into the cryptocurrency space shows that companies are interested in innovative technologies.
The strong rise in the price of Bitcoin has made the short-term outlook for Bitcoin bullish. Bitcoin price should now drop below $37500 for the outlook to become neutral again. At the same time, the price has a large margin of safety, since only a price decrease below $31500 would make the forecast bearish.
In the current situation, the level of 46000 dollars provides immediate support for the BTC/USD pair. The next support is located around 44200 dollars. The level of 40000 dollars is a key support level in the current situation.
On the other hand, if the bulls try to push the price of Bitcoin higher, they will face resistance around $47820. Successful completion of this level will push the price up to $48000. Above this level, the BTC/USD pair will face resistance around $49320.
The founder of Kenetic Capital, Jihan Chu, believes that in the current situation, the price of Bitcoin will not be able to rise above the April decline without a shock fall. He believes that the price could plunge to the area of $30000, in order to exceed the April high then.