Bitcoin Price Analysis: Bitcoin Falls After Repeated Rejections At The 20-day SMA

Last Updated July 23rd 2021
5 Min Read

Daily Bitcoin BTC Price Forecast
  • Bitcoin price is sitting below two strong resistance levels.
  • BTC has flipped the 20-bar, 50-bar, and 200-bar SMAs from support to resistance.

Prior to this weekend’s bearish action, Bitcoin price was running a 3-day bullish run, reaching an intra-day high of almost $40,000 this Thursday. However, repeated rejections at the 20-day SMA have opened the bears' doors to enter the market.


Bitcoin Price Falls Below $34,000 and $33,000 Levels

Over the last two days, the bears had taken full control over the market, pushing the Bitcoin price below the $34,000 and $33,000 psychological levels. The relative strength index (RSI) is hovering in the neutral zone, which gives the bears more room to drop the Bitcoin price before the asset becomes undervalued.

btc/usd daily chart 020121

Image: BTC/USD daily

The Bitcoin price is currently driving towards the $32,000 support line, wherein 820,000 addresses had previously purchased 348,000 BTC. Upon breaking below this line, the next viable support is at the $31,000 zone. 

btc/usd volume chart 020121

Image: IntoTheBlock

There are two indicators in the 4-hour Bitcoin price chart that gives plenty of credence to our current bearish outlook.

btc/usd 4-hour chart 020121

Image: BTC/USD 4-hour

Firstly, the MACD shows increasing bearish momentum, and secondly, the Bitcoin price has flipped the 20-bar, 50-bar, and 200-bar SMAs from support to resistance during this downward movement.


MicroStrategy Releasing World’s First Bitcoin ‘Playbook’ For Corporations

MicroStrategy, a business intelligence firm, is releasing a Bitcoin Corporate “playbook” at the Bitcoin Summit 2021 event hosted by the firm next week. MicroStrategy CEO Micheal Saylor took to Twitter to share the news. 

We are going to open source our #Bitcoin Corporate Playbook, an array of documents covering governance, legal, financial, technical & accounting considerations.  Get the briefing & early access at our Bitcoin for Corporations conference Feb 3/4.

In 2020, Saylor guided MicroStrategy to shift most of its treasury assets into Bitcoin amidst rising inflation and fears of a bleak economy. The company picked up over a billion dollars worth of Bitcoin, including a $650 million convertible note purchase in December. Apart from this, Saylor also purchased BTC for his personal portfolio. 

MicroStrategy is now encouraging other corporations to shift some of their assets into Bitcoin. In the upcoming playbook, the firm will lay out legal, governance, and other corporations' financial considerations to refer from, Saylor said. 

We are going to open-source our #Bitcoin Corporate Playbook, an array of documents covering governance, legal, financial, technical & accounting considerations.

The playbook’s launch (on February 3) is part of a larger event hosted by MicroStrategy, one that would feature other crypto businesses and discuss multiple Bitcoin-related topics.


Visa Very Bullish On Crypto

Visa CEO Al Kelly has recently reconfirmed that the company is still committed to offering cryptocurrency payments and onramps for customers. Kelly’s comments show that Visa is still committed to remaining a player in the crypto sector. 

Kelly said: 

We believe that we are uniquely positioned to help make cryptocurrencies more safe, useful and applicable for payments, by virtue of Visa’s size, integrations, and brand recognition.

Kelly said that Visa is classifying blockchain assets in two ways. First, crypto assets represent new financial assets (such as Bitcoin) which serve as a store-of-value. Second, stablecoins are pegged directly to existing fiat currencies and used more routinely for payments and transactions. 

To offer support for the first category store-of-value tokens, Kelly noted that Visa aims to offer on-ramp services so that customers can purchase and hold the tokens. 

Our strategy here is to work with wallets and exchanges to enable users to purchase these currencies using their Visa credentials or to cash out onto our Visa credential to make a fiat purchase at any of the 70 million merchants where Visa is accepted globally. 

Visa’s approach to the future of the stablecoins stands as optimistic, with the firm suggesting that digital currencies' potential offers a lot more use-case. According to Visa: 

[Cryptocurrencies are an] emerging payments innovation that could have the potential to be used for global commerce, much like any other fiat currency.


Bitcoin Price Is Expected To Reach These Levels

Bitcoin price is currently heading to the $32,000 support line. A break below it will take BTC to $31,000.

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