Bitcoin (BTC) shows insufficient strength at $ 50,000 as Bitcoin collapses – Aug 22, 2021
BTC / USD has continued to test the psychological price level of $ 50,000, but Bitcoin is collapsing. Today BTC price hit the high of $ 49,788 but has been resisted. The upside has been marginal as Bitcoin trades in the overbought region. The upside momentum will continue as long as the USD 48,000 support holds. Upward momentum will be invalidated if the USD 48,000 support is breached.
Resistance Levels: $ 48,000, $ 49,000, $ 50,000
Support level: $ 40,000, $ 39,000, $ 38,000
BTC / USD – daily chart
After breaking out at the USD 48,000 resistance, BTC price hits a series of higher highs and higher lows as it retests or breaks through the USD 50,000 price level. On August 20, the price of BTC hit a higher high of $ 49,400. The following day, Bitcoin hit another higher high of $ 49,788. The psychological price level of $ 50,000 will likely be broken on August 22nd, but crypto will encounter stiff rejection at the recent high. However, from the price action, Bitcoin is retreating after hitting the high of $ 49,788. Current selling pressures will escalate to a low of $ 48,200. This is crucial support for the BTC price. The uptrend will continue if the support holds at $ 48,200. Conversely, if the bears break this level of support, it signals a resumption of the downward move. Meanwhile, the price of BTC has dropped to a low of $ 48,854.
JP Morgan freezes bank accounts of the Bitcoin mining company
JP Morgan has been reported to have closed the bank accounts of a Bitcoin mining company. The American banking giant JPMorgan Chase has blocked all account activities from Compass Mining from Delaware. Compass Mining was involved in providing mining rigs and hardware hosting services for Bitcoin mining. Delaware-based Compass Mining enables individual users to conduct mining operations over their private infrastructure, but under the guise of supporting the Bitcoin hash rate and network. Last month, Mary Callahan Erdoes, director of wealth and asset management at JPMorgan, pointed out the importance of the demand for crypto investments. She said, “A lot of our clients say, ‘This is an asset class and I want to invest,’ and our job is to help them get their money where they want to go,” she said.
BTC / USD – 30 Minute Chart
Meanwhile, the price of BTC is rejected at the high of $ 50,000 as Bitcoin collapses. A breakout at the $ 50,000 price level should have catapulted Bitcoin into a rally above $ 55,000. In the meantime, the BTC price is going down. Downward trend on August 21; a traced candle body tested the 50% Fibonacci retracement level. The retracement indicates that BTC will fall to the level 2.0 Fibonacci expansion or level $ 47,858.90.
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