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  • Jack Dorsey CEO of Twitter Inc. Profits 55 Million Via Bitcoin
  • The Bank of America has outlined four key benefits of the latest move to El Salvador.
  • Forex trading  market participants may look for placing a buy trade above the $38,150 level with an initial target of $40,400 and $42,650.  

On Tuesday, the leading cryptocurrency pair Bitcoin is trading at the $38,500 level. Bitcoin price forecast remains bearish; however, the double bottom pattern can underpin the pair at $38,150.  

 

Jack Dorsey CEO of Twitter Inc. Profits 55 Million Via Bitcoin

A payment company named Square, owned by Jack Dorsey, has reportedly earned $55 million in profit from the transaction of Bitcoin.  

Jack Dorsey is also the CEO of Twitter, and the profit is made during the second quarter of the year. The whole Bitcoin revenue was generated through its peer-to-peer mobile payment service Cash App during the Q2 of 2021.

The gross profit of $55 million earned during Q2 was 26% less than the profit earned during Q1, reported as $75 million. Meanwhile, the company reported an impairment loss in its Bitcoin portfolio of $45 million due to a massive slump in BTC prices in Q2.

The revenue earned during Q2 represented about a 143% y-o-y increase in revenue. However, the figure was much less than the revenue of $3.5 billion reported in the first quarter of the year. This news should have triggered some of the pullbacks at BTC/USD prices on Monday. Thus, the cryptocurrency remained under pressure and kept declining for the day.

Marathon Digital Holdings Inc to Buy 30K Bitcoin Miners  

Marathon Digital Holdings Inc. underpinned the BTC/USD pair. On Monday, they announced to buy about 30,000 additional bitcoin miners worth $120.7 million.  

The delivery of the new machines is expected to ship between January and June of the following year. The addition of new 30,000 machines will further increase the scale of Marathon mining operation by 30%. It will increase the total number of bitcoin miners owned and operated by the firm to 133,000.

The CEO of Marathon, Fred Thiel, said that increasing the total network’s hash rate would increase the profitability of earning Bitcoin. This piece of news should have added further strength in BTC/USD prices, but Bitcoin kept on declining amid the recent market pullback.

Bank of America Outline Benefits – El Salvador to Adopt Bitcoin

The Bank of America has outlined four key benefits of the latest move to El Salvador. The nation is making bitcoin its legal tender. According to Bank of America, Bitcoin adoption could likely increase and add a considerable amount to the disposable income of the people of El Salvador.  

Furthermore, the country would attract foreign direct investment flows because it becomes a significant bitcoin mining hub. There were some other benefits mentioned in the report, and the President of El Salvador also shared this report on his Twitter account. This news also favored bitcoin but failed to reverse the bearish momentum in BTC/USD that was triggered by the massive profit-taking.

Global Oil Giant Saudi Aramco Denies Intention of Mining Bitcoin

Finally, the bearish momentum of the BTCUSD was supported by the latest announcement from global oil giant Saudi Aramco. The company denied reports of having intentions to mine bitcoin in the foreseeable future.  

This came in after a Brazilian Bitcoin miner, Ray Nasser, said in an interview at a Youtube channel that Aramco had plans to start mining the most popular cryptocurrency. The denial from Saudi Aramco added extra pressure on already declining prices of BTC/USD on Monday.

Bitcoin Price Forecast
BTC/USD 4-Hour Chart

Bitcoin Price Forecast – Daily Technical Levels

Support Resistance

38434.4 40159.4

37712.7 41162.7

36709.4 41884.4

Pivot Point: 39437.7

Bitcoin Price Forecast – Daily Technical Analysis: Double Bottom at $38,150

Bitcoin price forecast remains bearish; however, the double bottom pattern supports the pair at $38,150. On the 4-hour chart, the BTC/USD pair has disrupted the upward channel at the $40,450 level. The closing of candles below this level is driving the selling trend at $38,150 level.

On the lower side, violation of 38,150 level can extend selling trend until 36,550 level. The oscillator indicator like Stochastic RSI is staying at 0.01 in the oversold zone. It’s a signal that the failure to break below the $38,150 level can trigger a bullish trend in Bitcoin.  

Hence, the  Forex trading  market participants may look for placing a buy trade above the $38,150 level with an initial target of $40,400 and $42,650. Alternatively, sell trades can be taken upon breakout of the $38,150 level to target $36,550. All the best!

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