Bitcoin price on the BTC/USD pair appears to have stabilized above 55,000, following the dissipation of the bearish impact of the now-discountenanced tweet that spread market panic on Sunday and led to the largest liquidation in the cryptocurrency market.
Yesterday’s announcement that PayPal would offer the opportunity to buy and sell Bitcoin and other cryptos from its Venmo mobile app appears to have strengthened the position of bulls, but the market is yet to generate the bullish momentum required to allow for a recovery towards last week’s highs above 60,000.
Institutional investment in the cryptocurrency market continues unabated. As PayPal’s involvement in Bitcoin and other cryptos deepens, what is the outlook for the BTC/USD pair?
Technical Outlook for BTC/USD
The daily candle has once more found support at 55676, marking the 4th daily violation of this price level without a successful break. With three daily candles now resembling hammers, Bitcoin prices (BTC/USD) could be up for a remarkable recovery. This could come off a bounce on this support, which targets 58363 in the first instance and the 60000 psychological price area in the 2nd instance. 61803 and 63770 are additional targets to the upside, and a break of the latter sends BTC/USD to new ATHs.
On the flip side, a further price decline is dependent on a breakdown of the 55676 price level, with 52672 and the 50000 psychological support level serving as additional downside targets.