Bitcoin Revisits the Psychological Price Level as Bitcoin Uptrend Is Uncertain – July 31, 2021
On July 30, Bitcoin bulls broke the $40,000 psychological price level as Bitcoin uptrend is uncertain. This propels BTC price to rally to $42,299. Traders believe that if buyers clear the resistances levels from $40,000 to $42,451, Bitcoin may resume the second round of upside momentum. For the past 48 hours,
Despite the recent breakout above $40,000 resistance, the bulls fail to clear the $42,451 resistance. However, BTC price is fluctuating between $41,000 and $42,400 price levels. Nonetheless, buyers will have an uphill task to push BTC price above the resistance zones of $41,000 and $42,451. The bears have been defending the above region aggressively. Nevertheless, if Bitcoin faces rejection from the $42,400 high, BTC price will fall to $36,000 low. This will cause Bitcoin to be range-bound between $36,000 and $42,000 price levels. In the meantime, the price action is characterized by small body indecisive candlesticks called Doji and Spinning tops. These candlesticks are indicating that buyers and sellers are undecided about the direction of the market. Nevertheless, the RSI and the daily stochastic are indicating that Bitcoin has reached the overbought region of the market. In other words, Bitcoin will decline from the recent high if it faces rejection.
IMF Plans to “Step Up” Monitoring of Digital Currency
The International Monetary Fund or IMF plans to monitor digital currencies while also working with related financial institutions. According to reports, it has been published on IMF paper on how the fund plans to “manage this far-reaching and complex transition” toward a digitized economy. In a digitalized economy, “Payments will become easier, faster, cheaper, and more accessible, and will cross borders swiftly. These improvements could foster efficiency and inclusion, with major benefits for all.” In its April paper, IMF plans to add five sets of experts to properly conduct research. These include lawyers, digital risk experts, financial sector experts fiscal economists, and data specialists. These experts will cover research into the digital currency industry.
Nevertheless, the BTC price is still fluctuating below the $42,400 resistance as Bitcoin uptrend is uncertain. The upward move has been stalled below the recent high as the crypto resumes a sideways move. As Bitcoin consolidates below the recent high, the altcoin may encounter a breakdown or breakout. Meanwhile, on July 26 uptrend; a retraced candle body tested the 78.6% Fibonacci retracement level. The retracement indicates that Bitcoin will rise but reverse at level 1.272 Fibonacci extension or level $43,607.60.
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