Anchorage Digital Asset License is Lifting Bitcoin Price (BTCUSD) Towards $40,000

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Written By: Eno Eteng (MSTA)

Reviewed By: Crispus Nyaga

Jan 14, 2021, 14:04 GMT 14:04

BTCUSD - Bitcoin

Summary:

The award of a digital banking license to Anchorage is pushing the BTCUSD pair above the $38,000 price level, with Ethereum ad Rank.

Bitcoin prices soared back above the $38,000 after Anchorage Digital Bank became the first digital asset bank to come under Federal regulation.

Anchorage had sought a natural trust charter from the Office of the Comptroller of the Currency (OCC) and subsequently got it.

Under the new arrangement, institutional participants will have a vehicle with which to carry out additional cryptocurrency-related projects such as staking or lending.

Technical Outlook for BTCUSD

Today’s upside push is now challenging resistance at 38162.46. Price needs a confirmation of the violation for the break to be confirmed. A confirmed break opens the door towards the existing record high at 42072.33. The 423.6% Fibonacci extension at

45972.96 could be the next target if the existing ATH is taken out.

On the other hand, failure to confirm a break of 38162.46 could lead to a retest of 35997.70, with 32239.66 (38.2% Fibonacci retracement) serving as an additional downside target. We could also see the price decline towards 27668.69 if the ascending support trendline that connects the lows of price from 11 December till date gets taken out.

BTCUSD Daily Chart

Written By: Eno Eteng (MSTA)

Reviewed By: Crispus Nyaga

Eno is a certified financial technician and member of the UK Society of Technical Analysts. He loves to trade and write about stocks, Forex, and CFDs. Since 2009, he has consulted several financial companies as a trader and strategy developer. His work can be seen on several forex blogs and trading educational websites.