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SUPPORT ZONE CONSOLIDATION MAY TRIGGER FURTHER UPSIDE IN BITCOIN PRICES

SUPPORT ZONE CONSOLIDATION MAY TRIGGER FURTHER UPSIDE IN BITCOIN PRICES

Bitcoin (BTC), the topmost cryptocurrency by market capitalization slipped around 1.38 percent after scaling to a record high of $64,829.14 during early trading hours on Wednesday in the US. The bulls were in full control ahead of the launch of Coinbase IPO, the cryptocurrency platform; on Wall Street and hours before the Coinbase shares started trading on the Nasdaq stock exchange.

BTC was trading at  $ 7009 last year in  April 2020 and crossed the $64,000 mark for the first time appreciating by over 450% over the last six months along with other altcoins that witnessed new ATH on each day closing candles. 

Even in Asia, the cryptocurrecy climbed to a new high and by almost 1.6% to $64,207 and crypto-based stocks including Riot Blockchain Inc. and Marathon Digital Holdings Inc. were also in a strong uptrend in Nasdaq as the inclusion of Coinbase in the Nasdaq stock exchange was seen as an endorsement of cryptocurrencies by the investor community as a means of economic transactions.

Bitcoin (BTC) is currently trading at  $62,314.84, down by 2.4% from yesterday’s close however moving in a range and consolidating before the next upside move. $60,000, which acted as the resistance level before the recent breakout three days back will work as strong support now and is to be confirmed during the next few trading sessions.

As the Relative Strength Index (RSI) moved past the 80 range signaling an ‘oversold’ condition, a small pullback below that level was imminent with profit getting booked  by investors.

Besides, there has been a lowering of initial euphoria of Coinbase listing including adverse government action of Turkey, India, and some other countries advocating a ban on transacting through digital currencies which have slowed down the momentum of BTC prices with a decrease in volume. The long-term trend, however, remains positive as seen through important technical indicators in daily and hourly charts.

Buyers are seen taking positions at support levels with the ‘buy on dip’ strategy expecting higher prices over the future sessions. 

BTC is now consolidating and moving in a narrow range around the support level and any decisive and sustained move above the support level can give a breakout to the next resistance pegged at $68,000-$70,000 level.

Elon Musk, the co-founder of Tesla Electric Vehicles earlier disclosed a $1.5 billion investment in cryptocurrency and hinted at accepting payments in this crypto. Even Morgan Stanley and Goldman Sachs also recently announced a crypto investment offer for their employees.

Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. Crypto is not a legal tender and is subject to market risks. Readers are advised to seek expert advice and read offer document(s) along with related important literature on the subject carefully before making any kind of investment whatsoever. Crypto market predictions are speculative and any investment made shall be at the sole cost and risk of the readers.