Last time we noted that we were very sceptical about bitcoin trading above 50 000 USD. We noted that we were watching RSI for crossover above 70 points which would be subsequently followed by peak in price. Crossover did not occur. However, we believe that the peak in price occured. We are currently very bearish on BTCUSD and we expect downtrend to continue. Our short term price target is 40 000 USD.
Technical analysis RSI failed to cross above 70 points. Instead it stages reversal. MACD and DMI are bearish. However, Stochastic still oscillates in the bullish area. ADX continues to grow which suggests the trend is building up strength. Closest resistance sits at 59 564.24 USD while major resistance sits at all time high of 64 895.22 USD. Support 1 around 43 800 USD was broken today and we expect it to be retested soon. We remain bearish on BTC.
El Salvador adoption We would like to express our view on El Salvador's adoption of BTC as legal tender. El Salvador is one out of three latin american countries that are oficially dolarized. El Salvador's GDP is approximately 27 bn. USD and its population stands around 6.4 million. Market cap of BTC is approximately 1 trn. USD while USA's GDP is 21.4 trn. USD. According to well renown economist Steve Hanke over 70% of the population in El Salvador do not possess a bank account. We think it is very interesting information and if true then it is very unlikely that adoption of BTC by El Salvador will have any fundamental impact on bitcoin itself.
Above is depiction of bitcoin futures market. Gap area is observable and we think it plays important role. We previously mentioned that if price of BTC dropped below this area then more selling was highly probable.
Disclaimer: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not serve as basis for taking any trade action by individual investor. Your own due dilligence is highly advised before entering trade.
การซื้อขายยังคงดำเนินอยู่
We remain bearish. Our price target of 40 000 USD remains in place.
ปิดการเทรด: ถึงเป้าหมายการทำกำไร
Short term price target of 40 000 USD was reached overnight.