Bitcoin Technical Analysis: How Far Is BTC Going To Fall?
Daily Bitcoin BTC Price Analysis
- The Bitcoin price faces three straight bearish sessions.
- Is BTC dropping towards the $37,500 support wall?
Bitcoin price has been in a bearish downtrend over the last three days, wherein it fell from $42,260 to $38,800 – losing almost $3,500 in its overall valuation. Previously, BTC fell from $34,300 to $29,700 between July 5 and July 20 and managed to:
- Reverse market momentum from green to red.
- Flip the 20-day SMA from support to resistance.
Bitcoin Price Retreats From Crucial Level
Prior to the aforementioned 3-day bearish rally, Bitcoin price has had 10 consecutive bullish days between July 21 and July 30 as BTC jumped from $29,800 to $42,200 – entering the $40,000 psychological level. During this jump, the premier cryptocurrency managed to flip the 20-day and 50-day SMAs from resistance to support. The 20-day SMA has crossed over the 50-day SMA to form a bullish cross, while MACD indicates sustained bullish market momentum.
Image: BTC/USD daily
The Bitcoin price has healthy support at $37,500. This line needs to stay strong to prevent a further downtrend. As per the IOMAP, almost 930,000 addresses had previously purchased almost 446,000 BTC at this level.
Bank Of America: Bitcoin Adoption Will Benefit El Salvador
Bank of America, one of the largest banking institutions in the US, recognized some key opportunities that Bitcoin can offer to El Salvador. The bank claimed that the introduction of Bitcoin could potentially lower the cost of remittances, which represent nearly a quarter of the tropical country’s gross domestic product. In turn, this could substantially increase the disposable income of Salvadorans.
Banking the unbanked is seen as yet another advantage of Bitcoin adoption. Roughly 70% of citizens in El Salvador do not have access to a bank account. Finally, El Salvador could attract foreign direct investment (FDI) flows by becoming a Bitcoin mining hub of the likes of Iceland.
In March, Bank of America published a scathing report about cryptocurrencies, which states that Bitcoin’s only viable use case is price speculation. After ditching its currency two decades ago, President Nayib Bukele decided to turn his country into a cryptocurrency utopia.
BTC will be the legal tender in the country from September.
While Bukele became popular within the crypto community, his cryptocurrency push also attracted plenty of criticism from analysts and Salvadorans.
The International Monetary Fund (IMF) decried a slew of risks posed by crypto adoption. Meanwhile, Moody’s downgraded the country’s rating partly because of Bitcoin jeopardizing its talks with the IMF.
Bitcoin Price Is Expected To Reach These Levels
If the buyers don’t take back control, the Bitcoin price will drop to the $37,500 support level. A further break will take BTC to $35,000 which sees a confluence of the 20-day and 50-day SMAs.