Bitcoin price analysis: BTC/USD approaching breakout: Crypto trading picks up in Pakistan as economic crisis looms
|- Bitcoin price is trading between the immediate moving average support and resistance.
- Economic uncertainty continues to push citizens in Pakistan towards crypto trading; Bitcoin trading volume spikes.
Bitcoin, like the majority of coins and altcoins, is trading in the red on Monday 30. However, the 200 simple moving average is a dynamic inflection point that is supporting the price at the moment on the half-hour timeframe chart. Similarly, the 50 simple moving average on the same chart is preventing retracement on the upside.
In other news, Pakistan is on the verge of an economic crisis due to the recent national elections in the county. Economic uncertainty has become more apparent following the intentions of the Former cricketer, Imran Khan to take control of the government. Significantly, digital assets trading volumes have been on the rise in the country due to both economic and political uncertainty.
A recent report Published by Forbes noted that Bitcoin trading volume is rising on most of the cryptocurrency exchanges in the country, particularly LocalBitcoins. Although Pakistan Central Bank said back in April that it will not support crypto trading, the locals in the nation have not wavered. Cross-border remittances are becoming difficult due to lack of US dollars and this is also contributing to the rising crypto trading volumes.
Bitcoin price analysis
Bitcoin price broke several barriers last week; for instance, $8,000 and $8,400. However, the trend lost steam after recording highs of $8,492.16. A downside dip followed shortly after unable to get support at $8,200 and $8,000. Bitcoin broke below the 50% Fib retracement level with a previous drop from the highs of $8,492.12 and $7,212.53 lows. BTC/USD tested $7,800 support before the buyers entered leading to a sharp ascent in an engulfing candle above $8,200. However, the upside has been capped below $8,300.
Bitcoin price is currently trading at the narrow end of a contracting triangle pattern pending a breakout. It must detangle from the bear pressure at $8,200 and $8,300 to open the gate towards $8,400 and eventually beyond $8,500 in the medium-term. On the flipside, the price breaks the contracting triangle support at $8,150, BTC/USD could break down further and retest $8,000 and $7,800.
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