Bitcoin Technical Analysis: BTC Fails To Conquer 20-day SMA

Last Updated July 23rd 2021
4 Min Read

Daily Bitcoin BTC Price Analysis
  • Bitcoin price had previously taken over the 2-month upward trending line.
  • BTC is stuck between key levels with low volatility.

Bitcoin price dropped from $61,175 on March 14 to $51,180 on March 25, dropping by almost $10,000 in over ten days. In the process, it successfully flipped the 20-day SMA from support to resistance which was a major win for the sellers.


Bitcoin Price Trends Between Tough Levels

Three days back, the Bitcoin price jumped up from the 50-day SMA and went up from $51,180 to $55,650 – gaining almost $4,000, in the process. During this jump, they managed to win back the 2-month old upward trending line. This was critical because post rejection at the 20-day SMA, the upward trending line has prevented further drop. The Bollinger band has started narrowing, which tell us that the price volatility is decreasing.

BTC/USD daily chart 032921

Image: BTC/USD daily

The upward trending line coincides with the $55,000 support zone. As you can see in the IOMAP, this zone provides healthy support to the Bitcoin price. Previously, at this level, nearly 1.2 million addresses had purchased over 660,000 BTC tokens here.

BTC/USD volume chart 032921

Image: IntoTheBlock


New Zealand Retirement Fund Bets on Bitcoin

The KiwiSaver Growth Strategy, a New Zealand retirement fund, has reportedly allocated 5% of its assets to Bitcoin. The firm cited the cryptocurrency’s similarities to gold as one of the reasons behind the move. The KiwiSaver Growth Strategy is a NZ$350 million ($245 million) fund operated by New Zealand Funds Management. 

James Grigor, the chief investment officer at New Zealand Funds, said that BTC could be featured in additional KiwiSaver products over the next five years. The fund had to change its offer documents in October to allow it to buy cryptocurrencies. 

Grigor said that BTC is similar to gold as people see it as a store of value in times of economic crisis. 

If you are happy to invest in gold, you can’t really discount bitcoin. 

Grigor noted that the KiwiSaver Growth Strategy retirement fund comprises traditional assets, bonds and shares as they "compound over time to give people the best retirement they can get.” However, it also invests in other opportunities as they present themselves, he added

Bitcoin's price surged from a little over $10,000 late last year to a new all-time high near $62,000 earlier this month, in a process the CIO called the “legitimization” of Bitcoin. He said that pension funds can now invest in BTC. KiwiSaver itself has reportedly invested in Galaxy Digital funds.


Soros Fund Management CIO On Bitcoin

Dawn Fitzpatrick, the CIO of Soros Fund Management, recently said that Bitcoin and other crypto are at an “inflection point,” partly due to increased money supply in the US. In a recent interview with Bloomberg, she said that Soros is also investing in the cryptocurrency infrastructure.

Fitzpatrick added that Bitcoin is no longer a “fringe asset.” 

When it comes to crypto generally, I think we’re at a really important moment in that something like Bitcoin might have stayed a fringe asset but for the fact that in the last 12 months we’ve increased money supply in the US by 25% so there’s a real fear of debasing of fiat currencies. 

The CIO mentioned that Bitcoin is “easily storable, easily transferable and has a finite amount of supply." She believes the flagship crypto has taken some of gold’s buyer base away. 

Fitzpatrick went on to say that central bank digital currencies (CBDCs) will be here "quicker than people expect" and that China was leading the charge. While the US is slowly researching the digital dollar, China is piloting the digital yuan.

Fitzpatrick said that this was a strategic part of China and perhaps a way to undermine the influence of Bitcoin. 

They want their digital currency to be used around the world. It’s a potential threat to Bitcoin and other cryptocurrencies. 


Bitcoin Price Is Expected To Reach These Levels

Bitcoin price will need to overcome the 20-day SMA to reach $60,000 for the first time in two weeks.

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