Bitcoin, Ethereum and El Salvador

Things do not look good at all. Bitcoin continues to trade closer to the $30k trendline, and if you want to believe, despite the bullish news from El Salvador. I do not like the bearish flag pattern that is forming because, if I am not wrong, the potential downside will probably be the same as the length of the pole. That means even the support of $20k can't hold. The pole length is about $30k and you can do the math from there. I have seen people calling for support at $23k but in my opinion, the next level is $20k.

The weekly chart for Bitcoin looks terrible. The last week's candle was horrendously bearish and this week has started in the red. Don't have high hopes for any short-term upside here. However, I pray that my analysis goes down the drain and is proven totally wrong.

The chart that does prove me wrong totally is ETHBTC. While not exactly a cup and handle here but what a nice bounce from 50 DMA and ETHBTC looks ready to break the 0.08 level. Hold your horses though! If BTC is headed to $20k, I am willing to prophesize that a double top will form and ETHBTC will head lower. On the contrary, if by some divine (read institutional) intervention, BTC starts another leg up, ETHBTC is all set to target its ATH.

El Salvador

A beautiful country (so the pictures suggest) with a visionary President. The President of this Central American country is ready to make Bitcoin legal tender. He believes it will help the citizens of El Salvador in availing of banking-like services. Maybe he read too many 'Bitcoin fixes this' memes. I do not know how politically stable El Salvador is, or whether it is a tax haven or not. The move has the potential to help El Salvador.

El Salvador is largely a cash economy, where roughly 70% of people do not have bank accounts or credit cards. Remittances, or the money sent home by migrants, account for more than 20% of El Salvador’s gross domestic product. Incumbent services can charge 10% or more in fees for those international transfers, which can sometimes take days to arrive and that sometimes require a physical pick-up. Source

Is it bullish for Bitcoin? Best to ignore news like this, no matter what folks on Twitter are saying.

Posted Using LeoFinance ^Beta