Bitcoin (BTC) Price Prediction: BTC/USD Faces Rejection at $49,788 as Bitcoin Slumps

Bitcoin (BTC) Shows Inadequate Strength at $50,000 as Bitcoin Slumps – August 22, 2021

BTC/USD – Daily Chart

Following the breakout at the $48,000 resistance, BTC price is making a series of higher highs and higher lows as it retests or breaks the $50,000 price level. On August 20, BTC’s price made a higher high of $49,400. The following day, Bitcoin made another higher high of $49,788. On August 22, the $50,000 psychological price level is likely to be breached but the crypto will face stiff rejection at the recent high. However, from the price action, Bitcoin is retracing after reaching the high of $49,788. The current selling pressure will extend to the low of $48,200. This is critical support for BTC price. The uptrend will resume if the support at $48,200 holds. On the other hand, if the bears break this support level, it will signal the resumption of a downward move. In the meantime, BTC’s price has fallen to the low of $48,854.

JP Morgan Blocks Bank Accounts of Bitcoin Mining Firm

It has been reported that JP Morgan has shut down the bank accounts of a Bitcoin mining firm. American banking giant JPMorgan Chase has blocked all account activities of Delaware-based Compass Mining. Compass Mining has been involved in offering mining rigs and hardware hosting services for Bitcoin mining. Delaware-based Compass Mining allows individual users to undertake mining operations via its private infrastructure but under the pretext of supporting the Bitcoin hash rate and network. In the previous month, Mary Callahan Erdoes, director of asset and wealth management at JPMorgan, has indicated the importance of the demand for crypto investment. She said: “A lot of our clients say, ‘That’s an asset class, and I want to invest,’ and our job is to help them put their money where they want to invest,” she said.

BTC/USD – 30 Min Chart

Meanwhile, BTC’s price faces rejection at the $50,000 high as Bitcoin slumps. A breakout at the $50,000 price level should have catapulted Bitcoin to rally above $55,000 high. In the meantime, the BTC price is falling. On August 21 downtrend; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that BTC will fall to level 2.0 Fibonacci extension or level $47,858.90.

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