Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Bitcoin price weakens after hitting resistance, remains near multi month highs

Published 12/08/2021, 10:03
Updated 12/08/2021, 10:08
© Reuters.

© Reuters.

By Samuel Indyk

Investing.com – Bitcoin was trading around $45,000 on Thursday morning after bumping into key resistance levels on Wednesday night.

The world’s largest cryptocurrency has been ripping higher in recent weeks. Having traded below $30,000 on 21st July, Bitcoin has risen over 50% in that time frame to its current level around $45,000.

Elon Musk’s appearance at the B-Word conference appeared to be the catalyst for the latest move higher when he said it was likely that Tesla (NASDAQ:TSLA) would start accepting Bitcoin again as payment for vehicles.

The latest leg higher came following the passing of the US infrastructure bill on Tuesday. Some have argued that the cryptocurrency language in the bill would lead to declines in Bitcoin and other digital assets, given the requirement for brokers to report customer transactions to the IRS, while others have said that this legitimises cryptocurrencies as a mainstream financial asset.

“The tax reporting language is one of the clearest indications that Washington is prepared to accept crypto as a permanent part of the financial ecosystem,” said Cowen’s Jaret Seiberg in a research note.

Messi fan tokens

One of the bigger news stories today has come from Paris where Paris Saint Germain announced that Lionel Messi had been paid a portion of his signing on fee in cryptocurrency fan tokens.

The statement said the tokens in Messi’s welcome package were provided by Socios.com although did not disclose what percentage of the deal was paid with the tokens or what the total package was.

The fan tokens on Socios.com are built on the Chiliz blockchain infrastructure and use Chiliz as the exclusive on-platform currency.

Other major football clubs to have fan tokens on Socios.com include Barcelona, Manchester City and Leeds United.

Technical Levels

After trading as higher as $46,700, Bitcoin has since retraced back towards $45,000. $47,000 is a key resistance level for Bitcoin as it represents the 50% Fibonacci retracement from the April high to the July low.

A break above $47,000 could open the door to $50,000 for the first time since 15th May.

To the downside, the psychological $45,000 support level has held reasonably well before Tuesday’s low of $44,680 comes into play. Bitcoin is also trading in close proximity to its 200 day moving average near $45,160.

Below that and $42,300 could act as support before opening the door to $40,000 and the 100 day moving average near $38,700.

At 10:03BST, Bitcoin was trading near $45,140, down 2.3% in the last 24 hours.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.