Bitcoin: what analysts think of the current interlocutory phase
Even the Bitcon, like the main equity markets, it has been in the throes of a consolidation phase that has lasted for several weeks and analysts are starting to watch current levels with concern. The cryptocurrency queen in particular is under pressure again, a week after it plummeted 17% after its debut in El Salvador as a legal tender.
As he remembers Orlando Merone, Country Manager for Italy of Bitpanda “now in El Salvador, Bitcoin is one full payment currency, ccomparable to the US dollar, which has been in circulation in the country since 2001. Goods, services and even taxes can now be paid for using BTC and every merchant must accept its use as a legal form of payment. El Salvador bought its first 200 BTC one day before the law went into effect, and then got another 150 following the recent drop in prices ”.
El Salvador’s decision does not appear to be isolated and soon other countries may also adopt Bitcoin as fiat currency. According to the Kyiv Post newspaper, by 2022 also theUkraine plans to open the cryptocurrency market to businesses and investors.
Bitcoin, what analysts think
Despite the important news flow, Bitcoin is close to $ 44,000, where it has previously found a strong level of support.
For Craig Erlam, Oanda analyst a significant break of this level could be bad news for the short term trend. According to the analyst, Bitcoin has been showing signs of slowing down for weeks, with a rally now lacking in momentum and repeatedly tested lows. A break to the upside of $ 50,000 could have improved sentiment but instead, Bitcoin has quickly plummeted and is struggling to find a new level of support. “Perhaps Elon Musk will come to the rescue again ”hopes the analyst.
Of the same opinion also eToro. According to Edoardo Fusco Femiano, market analyst of eToro “after reaching the support of the area of 42,500 dollars, already tested on 6 August, the 4-hour chart of Bitcoin shows accumulation with increasing lows of Rai and decreasing lows of the price, confirming how much the cryptocurrency is seeking significant support on these prices.
Just a drop below 42,500 would significantly weaken the importance of the consolidation signals we are seeing on this timeframe.
On the upside, the most significant resistances are in the area of 47,400, 50,160 and 52,500 dollars.