- BTC/USD closed at $44,698.0 after placing a high of $47,157.0 and a low of $44,467.0.
- Bitcoin price prediction remains neutral as BTC consolidates in a narrow trading range of 46200 – 44000.
- Forex trading market participants should look for a sell trade below the $46,250 level.
The leading cryptocurrency, Bitcoin, is trading at a 45,326 level on Wednesday. The day before, the BTC/USD closed at $44,698.0 after hitting a high of $47,157.0 and a low of $44,467.0. BTC/USD dropped for a fourth consecutive session amid some negative developments surrounding the Bitcoin environment. On Wednesday, Bitcoin price prediction remains neutral as BTC consolidates in a narrow trading range of 46200 – 44000.
Fitch Ratings Agency Weight On BTC/USD Pair
One of the largest global credit rating agencies, Fitch Ratings, has recently warned El Salvador against adopting Bitcoin as legal tender. The agency expressed fears that digital assets could cause systematic risks for the Latin American country. The credit rating agency insisted that making bitcoin legal tender without clarity could introduce volatility and operational risks for the country’s people.
The agency cited the volatility and operational risks associated with the cryptocurrency ecosystem and warned about their impact on citizens as the nation lacked clarity on implementing BTC in mainstream markets.
Fitch Ratings also projected that this move by El Salvador would have a negative impact on insurance companies. The Bitcoin Law, passed by the country’s legislative assembly in early June, will compel merchants and businesses to accept bitcoin in exchange for goods and services.
It means that if policyholders decide to pay premiums in bitcoin rather than cash, So, it will become riskier for insurers as holding bitcoin on their balance sheet for an extended period will expose them to its price volatility.
He further said that insurance companies made about 21% of the total capital of El Salvador last year. The controversial Bitcoin Law that is expected to go live on September 7 will disrupt the country’s insurance sector. Fitch added pressure on Bitcoin prices and dragged BTC/USD downward. A renowned rating agency issued this warning.
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The rising strength of the US dollar also added to the loss in BTC/USD. The greenback was gaining strength amid the rising safe-haven appeal in the market due to increased geopolitical uncertainties along with faded economic recovery hopes.
The rising number of coronavirus cases, despite the vaccination campaigns, helped the dollar gain bullish momentum. Furthermore, the increased geopolitical uncertainties due to the Afghan government’s collapse boosted the safe-haven appeal in the market. The rising strength of the US dollar added further loss to BTC/USD as both have a negative correlation.
Surge In US Dollar Drags Bitcoin Price Lower
The rising strength of the US dollar also added to the loss in BTC/USD. The greenback was gaining strength amid the rising safe-haven appeal in the market due to increased geopolitical uncertainties along with faded economic recovery hopes.
The rising number of coronavirus cases, despite the vaccination campaigns, help dollar gaining bullish momentum. Furthermore, the increased geopolitical uncertainties due to the Afghanistan government’s collapse boosted the safe-haven appeal in the market. The rising strength of the US dollar added further loss to BTC/USD as both have a negative correlation.
Bitcoin Price Prediction – Daily Technical Levels
Support Resistance
43724.4 46414.4
42750.7 48130.7
41034.4 49104.4
Pivot Point: 45440.7
Bitcoin Price Prediction – Daily Technical Analysis: Upward Trendline at 44,080
Bitcoin price prediction remains neutral as BTC consolidates in a narrow trading range of 46200 – 44000. On the 4 hour chart, the BTC/USD has formed a symmetrical triangle pattern supporting it at 44,080 levels. Alongside, the same pattern is providing resistance at 46,269 levels.
The technical side of Bitcoin is still the same as we discussed in the Bitcoin Price Prediction on August 13. The BTC/USD’s next resistance lingers at the $46,765 level, and a bullish breakout of this level could continue buying until the $47,655 and $48,570 levels. On the 4-hour chart, the BTC/USD pair attempts to intrude the resistance level of $46,765. If this occurs, the subsequent target will be the $48,570 level.
The oscillator indicator like Stochastic RSI holds at 40 in the sell zone while the 50 daily EMA (exponential moving average – red line) supports a selling trend. The 50 EMA provides resistance at the 46,050 level; therefore, investors should expect a breakout of the 44,080 support level.
The breakout below the 44,080 support level could extend the selling trend to the 42,500 level. Therefore, the Forex trading market participants should look for a sell trade below the $46,250 level. The initial target remains at $44,080 and $43,550. All the best.
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