ZuluTrade Blog

El Salvador and Bitcoin Unite!

Market View | Tuesday, September 7, 2021 2:45 PM GMT

Today, El Salvador wrote history, as it became the first country to adopt Bitcoin as legal tender.
This does not come as a surprise, as the president of the country, Nayib Bukele has expressed his willingness to make this come to reality, a couple of months ago.
This is a big “bet” for him as he is counting on the cryptocurrency to boost the battered Salvadorian economy.

Millions of people are expected to download the government's new digital wallet app which gives away $30 in Bitcoin to every citizen.
Bitcoin fans around the world have also been buying $30 worth of the digital coins as a show of support and to help boost the value of the volatile currency.
However, not everybody is convinced and this uncertainty has become quickly noticeable in the price chart also.

The price is dangerously approaching the key trendline of this upwards move.
Additionally, the big bearish divergence of the MACD is indicating a potential reversal.

The situation is similar in the higher timeframe (4 hours). Elongated bearish divergence on the oscillator and price candlesticks that keep getting closer and closer to the major trendline indicate that.

Nobody knows where this will lead, but there are some potential levels of importance that someone should note.

If the price violates the trendlines and continues further to the downside the major support will be at the 43000 level, right on the Fibonacci congruence level (retracement and extension).
On the other hand, if the price makes new recent highs the 58000 level will be its next target and the place where the bears will retry their shorting intentions.

However, no matter what happens in the next couple of weeks and months, nothing will change the historical importance of this day.
Today the cryptocurrency found its first official government supporter.
Will this continue? If it does, who will be next…?

 

Disclaimer
The views expressed do not constitute investment or any other advice/recommendation/suggestion and are subject to change. Reliance upon information in this material is at the sole discretion of the reader. Opinions expressed in the report do not represent the opinion of ZuluTrade Social Trading Platform and do not constitute an offer or invitation to anyone to invest or trade. Every metric and the statistical number is a result of a past performance, which does not constitute a promise or a certainty for a future one.

 

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