- The Bitcoin price continued to drop as sellers retained control of the current session.
- BTC has been in the red for most of the week and had registered a drop of over 5% on Tuesday.
The Bitcoin price failed to recover as the marketwide bearish trend continued. BTC had started the current week in the red after it dropped by 0.68% on Sunday. BTC continued to fall on Monday and slipped below the 20-day SMA on Tuesday, registering a fall of over 5%, with the price settling at $60,628. On Wednesday, BTC remained in the red as it registered a marginal drop before slipping below $60,000 during the current session.
Bitcoin Price Chart Indicates BTC Could Drop Below $59,000
The Bitcoin price had started the previous week on a bullish note, as it pushed up by 5.52%, rising to $66,196. Tuesday saw BTC continue to push up as it rose to $67,927. However, after reaching this level, the price turned bearish, as it dropped by over 5% on Wednesday and settled at $64,359. BTC recovered on Thursday as the price pushed up by 1.63% before dropping back on Friday, falling by 1.55% and settling at $64,396. BTC started the weekend on a positive note, as the price posted a marginal increase on Saturday, rising by 0.54% and settling at $64,742.
Image: BTC/USD daily
The Bitcoin price fell back in the red on Sunday, as the price dropped by 0.68%, settling at $64,302. The price remained bearish on Monday, as it registered a marginal drop before dropping by over 5% on Tuesday, slipping below the 20-day SMA and settling at $60,628. BTC remained in the red on Wednesday, although the price did not see much movement. However, Thursday saw the price drop below $60,000 as sellers pushed the price below the 50-day SMA. Currently, we can see that the price is at $59,250, and with the MACD currently bearish, we could see the price drop even further.
Looking at IntoTheBlock’s IOMAP for the Bitcoin price, we can see that BTC faces strong resistance at around $61,575. At this price level, 1.4 million addresses have sold more than 678,000 BTC. BTC also has support at around $56,435. At this price level, more than 889,000 addresses have bought over 455,000 BTC.
The 4-hour bitcoin price chart shows us that BTC had slipped below the 50-bar SMA on the 12th when the price dropped to $63,381. With the 50-bar SMA acting as resistance, BTC could not push past this level until the 13th, when the price rose to $65,031. However, the 20-bar SMA was acting as resistance at this level, and BTC fell to $64,265 before pushing up to $65,950. After reaching this level, the price fell back in the red, as BTC dropped to $63,737, slipping below the 20 and 50-bar SMAs. The price fell further from this level, as it dropped to $59,006, slipping below the 200-bar SMA. BTC pushed up from this level, as the price rose to $60,922, but dropped back to its current level of $59,000.
We can see that the price is almost below the neutral zone as indicated by the RSI. If BTC drops further, we could see the price shift below the neutral zone.
Image: BTC/USD 4-hour
Fidelity Becomes Canada’s First Institutional Bitcoin Custodian
Regulators have reportedly permitted Fidelity Canada to function as the country’s first bitcoin custodian. The Investment Industry Regulatory Organization of Canada (IIROC) approved Fidelity to launch a new Bitcoin trading and custody platform that caters to institutions, pension funds, portfolio managers, mutual funds, and exchange-traded funds (ETFs) seeking direct exposure to BTC.
Scott Mackenzie, president of Fidelity Clearing Canada, said:
“The demand for investing in digital assets is growing considerably and institutional investors have been looking for a regulated dealer platform to access this asset class."
Many of the bitcoin funds operational in Canada currently use US-based custodians. By bringing an option to the local market, Fidelity’s move might facilitate the experience, paving the way for more institutional investors to purchase BTC directly. Per The Globe and Mail report:
“Fidelity Clearing Canada provides services to more than 100 investment companies in Canada. Together, with Fidelity Investments Canada ULC, they represent more than $222-billion in assets under administration and management as of June 30.”
The new platform’s launch will mark the first step into Bitcoin for Fidelity Canada. However, Fidelity Investments Inc. launched a similar product in the US in 2018, Fidelity Digital Assets, which has since provided institutional investors with bitcoin custody and trade execution services.
Bitcoin Price Is Expected To Reach These Levels
Looking at the Bitcoin price chart, we can see that BTC has slipped below $59,000. If the current sentiment persists, then we could see BTC drop to $58,000.