BTCUSD Analysis: The Cryptocurrency Inches Close to $50,000 As Congress Prepares to Vote on Biden’s Bill

BTCUSD Analysis: The Cryptocurrency Inches Close to $50,000 As Congress Prepares to Vote on Biden’s Bill
  • Bitcoin jumped after US House of Representative Speaker Nancy Pelosi asked Congress to vote and pass Biden’s infrastructure bill. 
  • Bitcoin now eyes $50,000 as investors look to market decisiveness to maintain the price above the trading range of $46,000.0 to $49,000.0.
  • On the technical chart, Bitcoin’s supporting factors are highly positive. 

Bitcoin (BTCUSD) added 1.01% as of 3:13 am GMT on August 22, 2021, from the previous day’s close. It traded from a low of $48,219.0 to a high of $49.788.0. However, the cryptocurrency giant is still 22.68% shy of the 52-week high at $64,374. This price brought the coin to a 324.69% annual increase. 

Infrastructure bill

Bitcoin jumped after US House of Representative Speaker Nancy Pelosi asked Congress to meet as soon as Monday, August 23, 2021, to deliberate on the Democrat’s infrastructural agenda. Congress intends to vote and pass Biden’s $1 trillion infrastructure bill. Additionally, the Senate intends to expand the social safety plan, passing the $3.5 trillion budget. 

Crypto-spending is set to increase after the enactment of Biden’s infrastructural plan. Due to its highly volatile nature, Bitcoin surged to an all-time high of $64,000. The digital coin surge was buoyed by public statements made by Tesla CEO Elon Musk and other leading technology companies like Twitter. 

The Dow Jones Industrial Average (DJIA) climbed 0.65% on the trading day to settle at $35,120.07 on news of the possible passage of the infrastructural bill.

Dow Jones Industrial Average Index

The Dow Jones is riding close to the all-time high, with investors upbeat on improved US economic performance. Apple (AAPL) traded to a +1.02% price change; Facebook gained 1.20% while Tesla added 1.09%.

The GDP is scheduled to rise helped by improved employment numbers despite the recent overhaul of the Afghanistan regime by the Taliban.

Decentralized trading is likely to take shape not just in Afghanistan but in the Middle East. Money printing has been halted in the country, with Western Union also suspending its transaction services.    

Congress called for regulation of the crypto market, with the IRS calling for regular reporting on transactions above $10,000. As the taxation debate boils up, the US Federal Reserve is on the verge of developing its digital currency related to the dollar.  

Positive investor sentiment

Bitcoin now eyes $50,000 as investors look to market decisiveness to maintain the price above the trading range of $46,000.0 to $49,000.0. The asset’s market capitalization edged towards $1 trillion, as it settled at $921.26 billion after the trading volume hit $32.91 billion on the trading day. 

On its part, Ethereum (ETHUSD) lost 0.82% to trade at $3,259.25, moving below the $400 billion market cap as of August 22, 2021. 

Cardano (ADA) was the highest daily mover among the crypto-giants, adding 6.47% as of 5:12 am GMT on August 22, 2021, to trade at 2.613810.    

Technical analysis

The daily chart shows that Bitcoin has been trending upwards since mid-July 2021. The partial decline gave way for the upward breakout after prices hit $41,155.12. Since then, Bitcoin’s price rose until it reached $49,154.12. The uptrend can make the BTC test the resistance at $50,539.24.   

Technical chart of the BTCUSD

The buy signal appeared when the BTC hit support at $28,600.00  on July 21 and swiftly recovered above $30,000. The cryptocurrency has been on an uptrend since then. 

Bitcoin’s supporting factors are convincing. The 14-day RSI is in the overbought zone at 73.27. The asset is trending above the 9-day EMA at 47069.87. 

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