FX.co ★ Technical Analysis of BTC/USD for June 25, 2021

Crypto Industry News:

Each adult Salvadoran citizen will receive BTC worth $ 30 from the government. President Bukele's announcement was received with enthusiasm by bitcoiners. The Salvadoran government will have to purchase the BTC it intends to distribute, adding more than $ 100 million to the market in purchasing pressure.

Some estimate that El Salvador has an adult population of 6.5 million. Yahoo Finance's Zack Guzman used this figure to make a quick estimate that El Salvador will be giving away some $ 195 million worth of bitcoin to its citizens.

Exact numbers are difficult to estimate. Statista data shows that in 2019, the number of Salvadoran citizens aged 15 and over was 4.72 million.

However, the euphoria related to the above reports may be somewhat premature. Local medium Prensa Latina insisted that El Salvadoran citizens will only receive free bitcoins after downloading a cryptocurrency wallet app released by the government.

Technical Market Outlook:

The BTC/USD pair has made the local high at the level of $35,453 , but it was capped the 50% Fibonacci retracement level seen at $35,188. The nearest technical support is located at $32,156 and the Bitcoin price is trading between those two levels now. The momentum is neutral and the market conditions are not overbought yet, so odds for another wave up are high.

Weekly Pivot Points:

WR3 - $47,340

WR2 - $44,234

WR1 - $39,697

Weekly Pivot - $36,451

WS1 - $31,670

WS2 - $28,714

WS3 - $24,054

Trading Recommendations:

Even despite the recent correction the bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. Any correction or local pull-back should be used to open the buy orders. This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).