Crypto Industry news:
Despite warnings from global agencies regarding Bitcoin adoption, the Salvadoran government continues to seize market opportunities.
When Bitcoin's price dropped below $ 46,000, Salvadoran President Nayib Bukele announced on Twitter that the country had "bought the dip". Thanks to 150 new coins, the government currently has 700 BTC worth nearly $ 32 million.
In an obvious nod to the "non-financial advice" statements displayed in the crypto ecosystem, Bukele shared his "presidential tip" reminding: "They can never beat you if you buy dips."
El Salvador's move towards adoption has excited the crypto universe, especially the possible tax exemption for Bitcoin investors. However, the government's decision to adopt Bitcoin as legal tender is not entirely free from problems.
In addition to the protests and marches against the government's move, the rating agency Standard and Poor's Global said the adoption "has immediate negative consequences" for the country's credit rating. S&P also said the move would hurt El Salvador's chances of getting a $ 1 billion loan deal from the International Monetary Fund.
Technical Market Outlook
The BTC/USD pair has almost made a new swing low below the level of $40,000. During the sell-off the market hit the level of $40,061. The nearest technical support is seen at $38,261. Any violation of the level of $40,061 would likely open the road to lower levels and the downwards momentum might increase then even more. The weak and negative momentum supports the short-term bearish outlook for BTC despite the extremely oversold market conditions on the H4 time frame chart.
Weekly Pivot Points:
WR3 - $55,433
WR2 - $52,068
WR1 - $51,114
Weekly Pivot - $46,800
WS1 - $44,786
WS2 - $41,130
WS3 - $39,325
According to the long-term charts 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. The next mid-term target is seen at the level of $59,506. 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).