Bitcoin Price Prediction: BTC Faces Bearish Correction At $45,000 Level

Daily Bitcoin BTC Technical Analysis

Last Updated August 9th 2021
2 Min Read
  • The Bitcoin price faces immediate resistance at 200-day SMA.
  • The parabolic SAR has reversed from negative to positive.

The Bitcoin price had four straight bullish sessions between August 4 and August 7 to counterbalance the four consecutive bearish sessions between July 31 and August 3. During this rally, BTC jumped from $38,100 to $44,600. Following that, this Sunday, BTC reached an intraday high of $45,250 and then dropped to $44,000.

Bitcoin Price Touches $45,000 And Drops Down

During the aforementioned rally, the Bitcoin price managed to flash several positive signals, mainly:

  • Flipping the 20-day and 50-day SMAs from resistance to support.
  • Reverse the parabolic SAR from negative to positive.

As things stand, Bitcoin faces immediate resistance at 200-day SMA which is holding the price down. The relative strength index (RSI)  is hovering at the edge of the overbought zone, A further rise will make BTC overpriced.

Image: BTC/USD daily

BTC/USD daily chart 080921

IntoTheBlock’s IOMAP tells us that Bitcoin price has strong resistance at 200-day SMA ($45,000). It seems like previously, at this level, 270,000 addresses had purchased 200,000 BTC tokens.

Image: IntoTheBlock

BTC/USD volume chart 080921

Ukraine To Pass Bill To Make It “Quite Legal To Pay With Cryptos”

Ukraine recently took a positive step towards legalizing cryptocurrencies. According to the Deputy Minister of Ukraine’s Ministry of Digital Transformation, a new crypto-related bill will soon make it “quite legal to pay with cryptocurrencies.”

However, despite the draft bill allowing transactions through crypto, it will not recognize digital assets as legal tender. In a recent interview, the minister claimed that if approved, the law will only allow crypto-purchases through payment intermediaries that enable crypto-to-fiat conversions. The bill will also permit local payment processors to convert crypto to fiat to enable crypto payments.

According to Bornyakov,

“Today, the legislation in Ukraine also does not allow you to pay in dollars, but you can easily pay for purchases with a dollar card. Currencies are converted instantly during payment. […] Therefore, it will be quite legal to pay with cryptocurrencies in Ukraine, but through an intermediary.”

The deputy minister also claimed that Ukraine would provide “work permits” to a few cryptocurrencies to “make sure that they work in good faith.” It is unclear how these “permits” will be issued to cryptocurrencies.

A lot more clarity, however, was found when crypto-entities were discussed instead.

“They will not need a license, but a work permit in Ukraine. This is a simpler procedure than licensing. The conditions for obtaining a permit will not be difficult, you will not have to register a legal entity in Ukraine. The main thing is to prove that there is the necessary amount of capital, and there are no people from the sanctions lists among the founders.”

Bitcoin Price Is Expected To Reach These Levels

The Bitcoin price must break above the 200-day SMA  to continue this upward surge. A further jump will take BTC to $50,000. However, if a further correction does happen, BTC could drop to the $43,500 support wall.

Top Brokers in
    All Regulated Brokers
    67% of retail clients lose money when trading CFDs with this provider.