Bitcoin Price Analysis: BTC Finds Support On The 50-day SMA

Last Updated July 23rd 2021
4 Min Read

Daily Bitcoin BTC Price Forecast
  • Bitcoin price fell below the ascending triangle pattern.
  • 29,824 Bitcoins were withdrawn from Exchanges yesterday, worth around ~$1.5 Billion.

Since March 14, the Bitcoin price dropped from $61,000 to $51,250 over the next 11 days. In the process, the premier cryptocurrency lost around $10,000 in its overall valuation. However, BTC jumped up from the 50-day SMA and went up to $52,570.

Bitcoin Price Flashes Multiple Sell Signals

Looking at the Bitcoin price daily chart, there are three sell signals:

  1. The MACD shows increasing bearish market momentum.
  2. The 20-day SMA has flipped from support to resistance.
  3. The parabolic SAR has reversed from bullish to bearish.

btc/usd daily chart 032621

Image: BTC/USD daily

Looking at the IOMAP, we can see that the 50-day SMA ($51,295) support is particularly strong. Previously, 576,000 addresses had purchased 367,000 BTC tokens.

btc/usd volume chart 032621

Image: IntoTheBlock

Bitcoins Withdrawn From Exchanges

Glassnode Chart

As per Glassnode, Yesterday was the largest down-draw in Bitcoin Supply from Exchanges since November 1st, 2019. 29,824 Bitcoin were withdrawn from Exchanges yesterday, or ~$1.5 Billion. So, it looks like the whales are being smart and buying up coins.

Also, CryptoQuant shared the following chart to show how high the price sentiment is among the Koreans.

CryptoQuant Charts

It seems like Korea’s Premium “Kimchi” Index renewed year-high again.

Goldman Sachs Enters Bitcoin ETF Race

According to a recent SEC filing, Goldman Sachs has requested approval for a new Exchange Tradable Fund (ETF) with the option to add exposure to Bitcoin. The firm noted that the financial product, dubbed Autocallable Contingent Coupon Coupon ETF-Linked Notes, would mature on March 26, 2026. 

The ETF may have exposure to cryptocurrency, such as bitcoin, indirectly through an investment in a grantor trust. The ETF’s exposure to cryptocurrency may change over time and, accordingly, such exposure may not always be represented in the ETF’s portfolio.

The fund’s primary investment strategy recognizes technologies that benefit from “products or services under development” as disruptive. These technologies or companies may belong to various sectors (energy, transportation, genomics, etc.) with scientific research that supports them, the document noted. 

The ETF is an actively managed exchange-traded fund that will invest under normal circumstances primarily (at least 65% of its assets) in domestic and foreign equity securities of companies that are relevant to the ETF’s investment theme of disruptive innovation

In addition to Bitcoin, the ETF would invest in fintech firms, “next-generation” internet companies, AI, energy transformation and automation transformation entities. A excerpt from the document reads:

The ETF is permitted to lend its portfolio securities to brokers, dealers and other financial institutions desiring to borrow securities to complete transactions, in pursuing arbitrage opportunities or hedging strategies or for other similar purposes.

Fidelity Also Enters Bitcoin ETF Race

Fidelity has recently revealed its intentions to launch the Wise Origin Bitcoin Trust, a Bitcoin ETF that will allow investors to gain exposure to the digital asset without holding the currency themselves. If approved, Fidelity Digital Assets (a branch of the firm founded in 2018) would custody the assets.

Fidelity Digital Assets would track the performance of Bitcoin through Fidelity Bitcoin Index PR. Coin Metrics will be the calculation agent for the index.

In a statement, Fidelity said: 

The digital assets ecosystem has grown significantly in recent years, creating an even more robust marketplace for investors and accelerating demand among institutions. An increasingly wide range of investors seeking access to bitcoin has underscored the need for a more diversified set of products offering exposure to digital assets. 

Kraken CEO: Bitcoin Price Will Hit $1M

Jesse Powell, the CEO of Kraken crypto exchange, recently reiterated his prediction of Bitcoin hitting $1 million in the next few years. In a recent H3 podcast interview, he revealed that when BTC was trading at $1, he made the mistake of investing $100,000 in mining equipment instead of investing in BTC itself. 

Powell said that Bitcoin could go from $500,000 to $1 million in the next few years “easily” over monetary policies such as quantitative easing that could cause inflation or currency debasement. He said:

It’s still early. I think so, I think Bitcoin is going to be $500,000 easily within the next few years. Look at how much money printing’s going on. Easily we’re going to hit a million dollars in Bitcoin. 

When asked if he would recommend investing in BTC, he said that people should “at least dabble in it” by allocating between 1% to 10% of their portfolios in the flagship crypto. However, he noted that he would not recommend investing money they need to pay expenses.  

Commenting on the thousands of altcoins available, Powell compared the cryptocurrency space to the stock market, advising investors to stick to the popular altcoins as they would if investing in stocks. Brand names like Apple, Google and Facebook are safe bets, and he said that the same is true for both Bitcoin and Ether. 

Don’t pay attention to all the new things coming out constantly. Just stick to Bitcoin and Ether. If you want to be super safe, I think Bitcoin and Ether are super safe bets. Everything else, it gets more exotic and you get higher returns with more risk, but I wouldn’t look at other thing. 

Bitcoin Price Is Expected To Reach These Levels

The Bitcoin price will likely keep trending between the 50-day SMA and the upward trending line.

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