Last Monday, despite the fact BTC/USDT managed to reach the $52,000 mark, and reached its as high as $52,389, then the situation changed radically. In just 12 subsequent hours later, BTC/USDT price lost 18%.
The following days, there was a fight between bulls and bears in the range between $44,000 and $47,000, which also continues to today. At the time of writing, Bitcoin price is trading at around $45,000 and it is likely that trading inside the formed sideways channel will last for some time.
On September 7, in the notorious El Salvador, a law came into force on recognizing Bitcoin as a legal means of payment on a par with the dollar. The country's young president, Nayib Bukele, posted a twitter three minutes before midnight at the local time. "In three minutes we will go down in history," he wrote. Earlier, the head of state confirmed that the government of El Salvador acquired 200 BTC, and after this announcement BTC jumped above $52,000.
About 20% of the country's GDP is made up of remittances that Salvadorans working abroad send to relatives. The huge commissions in USD that have to be paid at the same time are extremely unprofitable and enrich the financial structures of the United States. This is what became one of the main reasons for the adoption of Bitcoin. However, for the majority of Salvadorans, a third of whom do not even use the Internet, digital assets still remain a mystery with seven seals.
Refused to support the initiative of Nayib Bukele and the World Bank, which jeopardizes the receipt of tranches from the IMF. According to analysts, El Salvador lacks special laws that take into account the many nuances of using Bitcoin, which increases the risks associated with money laundering and terrorist financing. And leading rating agencies such as Fitch believe that the insurance industry in El Salvador will be particularly hard hit. Bonds with a B- rating are circulating in it, and now the situation will be aggravated by the presence of an unstable cryptocurrency.
On both daily and weekly price charts, the near future of the Bitcoin price is still ambiguous.
The weekly chart shows that, the MACD indicator histogram begin to decline, and the signal line of the RSI indicator, which has recently reached 60% from the neutral zone, is now heading south again. And if it turns out to be below 50% again, it looks like the correction will continue. In this case, the next support for the BTC/USDT could be $38,000 - $39,000.
On the daily price chart, it looks like the last fall of BTC reached the bottomas that of last month. And although the price has slightly rehabilitated, nevertheless, a further decline is still possible.
However, the Bullish sentiment still prevails. The histogram of the MACD indicator signals the bearish power is diminishing, and the RSI is heading to cross above the neutral zone, thereby giving the Bulls a chance to take control again.
Support: $44,000, $42,000 $38,000
Resistance: $48,000, $50,000, $52,000