Bitcoin Price Analysis: BTC Retreats From The $42,500 Resistance 

Daily Bitcoin BTC Price Forecast

Last Updated August 2nd 2021
2 Min Read
  • The Bitcoin price faces two straight bearish sessions.
  • BTC has flashed multiple buy signals.

Bitcoin price has yet again dropped below the $40,000 psychological level after flashing the bearish green-nine candlestick in the TD sequential detector. Previously, BTC fell from  $34,300 to $29,700 between July 5 and July 20 and managed to:

  • Reverse market momentum from green to red.
  • Flip the 20-day SMA from support to resistance.

Bitcoin Price Retreats From Crucial Level

Bitcoin price had 10 straight bullish sessions between July 21 and July 30, during which BTC went up from $29,800 to $42,200 – entering the $40,000 psychological level. During this jump, the premier cryptocurrency managed to flip the 20-day and 50-day SMAs from resistance to support and reverse the MACD from red to green. The 20-day SMA has crossed over the 50-day SMA to form a bullish cross.

Image: BTC/USD daily

BTC/USD daily chart 080221

The Bitcoin price faces the nearest resistance at $42,500. As per the IOMAP, almost 28,300 addresses had previously purchased almost 352,000 BTC at this level.

Image: IntoTheBlock

BTC/USD volume chart 080221

German Institutional Funds Can Now Allocate 20% Of In Cryptos

As per a recent Bloomberg report, Spezialfonds, German investment funds with fixed rules, will be able to allocate as much as 20% of their holdings in digital assets. Those funds reportedly manage around 1.8 trillion euros ($2.1 trillion) and can only be accessed by local institutional investors like insurers or pension firms.

Tim Kreutzmann, an expert on cryptocurrencies at BVI, Germany’s fund industry body, pointed out that the majority of the funds would most likely prefer to start small at first:

“Most funds will initially stay below the 20% mark. On the one hand, institutional investors such as insurers have strict regulatory requirements for their investment strategies. And on the other hand, they must also want to invest in crypto.”

Even though the initiative comes after increased demand from numerous German institutions towards cryptocurrency products, Kamil Kaczmarski, an executive at Oliver Wyman LLC, opined that many local investors are still skeptical, mainly because of the infamous volatility. He argued that this trend would remain for the next five years.

According to a spokesman, Deutsche Bank AG’s asset manager DWS Group and DekaBank have shown interest in investing in cryptocurrencies but so far have not made any decisions.

As per earlier reports, Deutsche Bank had demonstrated its support towards virtual currencies. CIO Christian Nolting highlighted the growth of the asset class experienced in the past few years. Moreover, he believes cryptocurrencies are here for the long haul:

“I think that by now, it is clear that cryptocurrencies (in some form) are here to stay, but I would argue that they are far from a mainstream asset class.”

Bitcoin Price Is Expected To Reach These Levels

If the buyers don’t take back control, the Bitcoin price could potentially drop back to $40,000 psychological level.

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