BTC/USD in a Range Bound Move as Bitcoin Consolidates Above $61k – October 19, 2021
Bitcoin bulls have remained focused as they attempt to retest the $62,900 resistance level as Bitcoin consolidates above $61k. In the first attempt at the resistance level, BTC/USD reached a high of $62,900 but was resisted. The cryptocurrency fell to the support above $59,000. In the second attempt at the resistance, Bitcoin fell but retraced to the support above the 21-day line moving average.
Resistance Levels: $50,000, $51,000, $52,000
Support Levels: $40,000, $39,000, $38,000
Today, Bitcoin bulls are making their third attempt to break the $62,900 resistance level. Can bulls breach the overhead resistance? The reason for the two failures is that the bears are strongly defending the $62,900 resistance zone. Presently, Bitcoin is fluctuating between $60,000 and $62,500 price levels for the past five days. The bottom line is that if buyers breach the $62,900 resistance, the market will rise to $70,000 high. Subsequently, the bullish momentum will extend to the high of $75,000. However, Bitcoin is trading in the overbought region of the market. If it faces rejection at the recent high, the king coin will fall and become range bound between $60,000 and $62,500. Nevertheless, if the bears break below the $60,000 support, the selling pressure will resume. The market will decline to $57,000 low.
US Treasury to “ Modernize and Adapt” to Digital Currencies
In October 18 report, the US Treasury Department has indicated that the growth of digital assets is obstructing the execution of sanctions as they attend to funds from legitimate humanitarian organizations. The department has made proposals that there should be better communication between itself and the crypto industry, financial institutions, and others in addition to “deepening its institutional knowledge and capabilities” could help improve current policy. The report added that: “Sanctions are a fundamentally important tool to advance our national security interests,” said Deputy Treasury Secretary Wally Adeyemo. “Treasury’s sanctions review has shown that this powerful instrument continues to deliver results but also faces new challenges. We’re committed to working with partners and allies to modernize and strengthen this critical tool. “If left unchecked, these digital assets and payments systems could harm the efficacy of our sanctions.”
Meanwhile, buyers are still struggling below the resistance at $62,900 as Bitcoin consolidates above $61k. Today, the bulls are repelled after reaching the high of $62,972. In previous rejections, the cryptocurrency finds support above the 21-day line moving average. However, if the bears break below the moving averages and bearish momentum is sustained, it will signal the resumption of the downtrend.
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