Bitcoin Technical Analysis: BTC Faces Rejection At the $48,000 Psychological Level, Even As Apple Pay adds BitPay Support

Last Updated July 23rd 2021
5 Min Read

Daily Bitcoin BTC Price Analysis
  • Bitcoin price is no longer overvalued, as per the RSI.
  • BTC is sitting on a healthy support level.

Since January 28, the Bitcoin price has jumped from $30,000 to $48,500. While many were wondering if $50,000 could be next, BTC ended up spoiling the party and dropped to $47,850. Let’s take a closer look with technical analysis.


Bitcoin Price Drops Below Key Resistance Levels

The Bitcoin price was on the verge of getting overvalued, but the relative strength index (RSI) has since dropped to the neutral zone. As of now, the $46,000 support barrier has to hold firm to prevent further drop.

btc/usd daily chart 021521

Image: BTC/USD daily

Looking at the $46,000 support wall, previously at this level, 718,000 addresses had purchased 448,250 BTC tokens. This zone is robust enough to absorb a lot of selling pressure.

btc/usd volume chart 021521

Image: IntoTheBlock


Wall Street Banks Are Now Embracing Bitcoin?

In contrast to previous skepticism, recent developments indicate that traditional financial institutions are more open-minded about Bitcoin. In an interview with CNBC, Daniel Pinto, the chief operating officer of JP Morgan, said that the banking giant was looking to offer Bitcoin trading. The decision appears to be influenced by the high demand from the bank’s clients for the crypto asset.  

Pinto said; that it was only a matter of time before there was a demand for BTC from its clients. He added

If over time an asset class develops that is going to be used by different asset managers and investors, we will have to be involved. The demand isn’t there yet, but I’m sure it will be at some point.

The JPMorgan executive also added that if Bitcoin became regulated, trades would involve vetted clients in addition to regulated exchanges, including Coinbase. Pinto’s comments contrast with earlier comments made by the bank’s CEO, Jamie Dimon, who had called Bitcoin a fraud. 

Recently, BNY Mellon, America’s oldest bank, also announced plans to offer Bitcoin custodial services for its clients.


Elon Musk Paises Bitcoin Over Traditional Banks

Elon Musk, the chief of Tesla and co-founder of PayPal, recently shared his thoughts on the traditional banking system. Musk joined a Twitter discussion started by Kristen Netten, co-host of the Third Row Tesla Podcast with Cathy Wood, the CEO of ARK Invest. Wood mentioned that Musk understands the environmental issues pertaining to Bitcoin. One of his goals is to save the planet, she added. 

The discussion turned toward banks and payments after a Twitter user shared a photo of a young Musk and said that the world’s richest man once worked as an intern at a bank. The user added that Musk then realized all the flaws of the banking system when it comes to making payments and wiring money. 

Musk entered the Twitter discussion to confirm this sentiment. He added that banks’ infrastructure is balkanized and that it suffers from high latency and weak security, especially when it comes to ACH transfers and credit cards. 

“Yup. Banks are basically balkanized, heterogeneous databases with high latency & weak security, especially ACH transfers & credit cards.”

In late January, Musk took part in a podcast where he admitted to becoming a Bitcoin supporter and he also went on to tag Bitcoin in his Twitter bio. Many crypto influencers and enthusiasts believe that Tesla’s Bitcoin investment was only a matter of time. 


Apple Pay Adds Bitpay Support

Crypto payments service provider Bitpay recently announced that it has added support for Apple Pay. Bitpay debit card holders based in the US can now add their card as a payment source in their Apple Pay app. This will let them make online and in-store purchases with cryptocurrencies wherever Apple Pay is accepted. 

An excerpt from the announcement reads:

US cardholders of the Bitpay prepaid Mastercard can add their card to Apple Wallet and spend with Apple Pay. With Apple Pay, Bitpay cardholders can make secure purchases in stores, in apps, and online.

While new Bitpay customers wait for their card to arrive, they can add virtual cards to the Apple Wallet via the Bitpay Wallet. This will help them start using Apple Pay immediately. Notably, Bitpay also announced that “support for Google Pay and Samsung Pay is planned for later this quarter.” 

CEO Stephen Pair said: 

We have thousands of Bitpay Wallet app customers using the Bitpay card who are always looking for new places and ways to spend their crypto. Adding Apple Pay and soon Google and Samsung Pay makes it easy and convenient to use the Bitpay card in more places from day-to-day items to luxury purchases.

The Bitpay card converts digital assets into fiat currency, which can be used to pay for purchases. The wallet app supports funding from Bitcoin, Bitcoin Cash and Ether in addition to four dollar-pegged stablecoins - USDC, GUSD, PAX and BUSD.


Bitcoin Price Is Expected To Reach These Levels

Bitcoin price is likely going to drop to the $46,000 support wall to prevent further downflow.

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