Bitcoin Technical Analysis: BTC Aiming For $55,000?

Daily Bitcoin BTC Price Analysis

Last Updated August 19th 2021
5 Min Read
  • The Bitcoin price has broken below the 200-day SMA.
  • The MACD has flipped from green to red.

The Bitcoin price is going through a period of correction, having dropped from $47,800 to $44,800 – losing almost $3,000 in its overall valuation. During this fall, BTC flipped the 200-day SMA from support to resistance and flipped the parabolic SAR from positive to negative. Along with that, the MACD also flipped from red to green.

Is the Bitcoin Price correction temporary?

Looking at the Bitcoin price daily chart, we can see two upward trends since July 21. Between July 21 and July 30, BTC went from $30,000 to $42,000. Following that, between August 4 and August 13, Bitcoin jumped from $38,200 to $46,000. If the pattern continues, BTC could reach $55,000.

Image: BTC/USD daily

BTC/USD daily chart 081921

IntoTheBlock’s IOMAP tells us that Bitcoin price has the strongest resistance at $47,000. Previously, at this level, a million addresses had purchased 500,000 BTC tokens.

Image: IntoTheBlock

BTC/USD volume chart 081921

Colombia and Bitcoin?

Colombia has expressed interest in Bitcoin multiple times in the past. In a recent CryptoPotato interview, the Advisor to the nation’s president, Jehudi Castro Sierra, opened up about his views on the leading crypto. During the interview, Castro Sierra explained that he is not a politician but a geek who approaches the primary cryptocurrency from that angle.

His career path has a deep connection to the software industry, which has introduced him to Bitcoin years ago. He reportedly referred to the cryptocurrency as the “most brilliant piece of software ever.” To prove his point, Castro Sierra touched upon the recent mining adjustment processes.

After China went against BTC miners and ordered them to shut down, the hash rate plummeted by more than 50% in a month. The network reacted as it is supposed to be, making it easier for active miners to do their job while the cast out ones migrated. As such, the hash rate recovered to a large extent.

“I approached Bitcoin as a great open-source project. After some time, I also got interested in the monetary innovation that it represents, and I am still discovering amazing new things every day."

While stressing out that he is not a politician, Castro Sierra talked about his connection to the political scene in Colombia. However, he clarified that his role is entirely related to technology and digital transformation. With various projects related to those two spheres, Castro Sierra outlined some of the progress achieved so far and said the country has become focused on BTC and other virtual currencies.

“Currently, one of the main focuses is around cryptocurrencies. We have an innovative sandbox where we allow exchanges to reach the citizens in an easy and secure way. The idea is with the information collected on this sandbox to have a friendly regulation that incentivizes innovation and attracts investment.”

Intel Reveals $780K Stake in Coinbase

Leading chip manufacturer Intel Corp has declared a small stake in cryptocurrency exchange Coinbase. The corporation disclosed that it held around 3,014 shares of Coinbase’s Class A common stock. Intel declared this holding in a quarterly regulatory report issued to the US Securities and Exchange Commission (SEC). Per reports, these shares are worth more than $788,000. 

Intel Corp first made their investment in Coinbase during Q2 2021. This was around the time when the exchange went public through a direct listing back in April. On its first day of trading, Coinbase’s value rose as high as $112 billion. Reports referred to it at the time as the most valuable US exchange.

Coinbase has continued to expand its trading options for its users. It recently introduced another five assets onto its platform. Those assets, all Ethereum tokens, included Request (REQ), TrueFi (TRU), Quickswap (QUICK), Wrapped Luna (WLUNA), and Axie Infinity (AXS). Two of those tokens, REQ and TRU, hit new milestones around the same time. 

Coinbase is not only finding its feet among multinational tech corporations like Intel. Add federal law enforcement agencies to that list too. Reports recently revealed that the US Immigration and Customs Enforcement (ICE) agency had purchased computer forensics software that the exchange developed. ICE joins government agencies like the Internal Revenue Service (IRS) in using analysis software developed by and for the crypto space.

The forensics software reportedly costs $29,000 and will come with a one-year estimated performance period.

Fidelity’s Crypto Ambitions Are HUGE

Fidelity’s crypto market plan appears to be more ambitious than previously imagined, as the asset manager looks to provide more institutional pathways to digital assets. 

In a recent interview with the Boston Globe, Christine Sandler, head of sales and marketing for Fidelity Digital Assets, said that institutional interest in crypto is growing. For most investors, the primary entry into crypto has been Bitcoin and Ether.

Tom Jessop, who heads Fidelity Digital Assets, said the pandemic was a major motivator for investors to get into crypto.

“What really got people off the fence was the pandemic, because you’ve got this scarce asset class — there will only ever be 21 million bitcoin created — and an environment where our currency is being debased, and there’s a ton of money printing.”

Most institutional investors are carefully participating in the crypto market for the first time this year. Institutional interest mostly remains in purchasing Ethereum or Bitcoin directly. Fidelity Investment seems to be one step ahead, aiming to be among the first to offer the infrastructure necessary for investors to access the crypto market directly.

In March, Fidelity submitted the S-1 document to the SEC. At the end of July, Fidelity acquired a 7.4% stake in North American crypto miner Marathon Digital Holdings, worth $20 million. Fidelity has also created its own specialized venture capital division called Devonshire Investors, investing in cryptocurrency startups like ErisX, Talos, and Coin Metrics.

The company’s crypto ambitions have been fuelled by a growing demand from clients to access crypto investment opportunities. A similar trend is being observed across major institutional funds and banks in the United States and globally. Per Cointelegraph reports, JPMorgan is now offering clients access to six crypto-dedicated funds. After their initial criticisms of digital assets, firms like BlackRock, Goldman Sachs, and Citibank have also expressed a more positive outlook on Bitcoin. 

Bitcoin Price Is Expected To Reach These Levels

If our long-term bullish thesis holds, the Bitcoin price will jump to $55,000 post-correction.

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