Bitcoin Loses Support as It Revisits $42,000– August 18, 2021
Following the formation of a bearish double top, the BTC price resumed a downward move. The current selling pressure will extend to the breakout level. Presently, BTC’s price has fallen to a low of $44,806. The bottom line is that if the BTC price falls and breaks below the breakout level of $42,000, the selling pressure will continue on the downside. Conversely, if Bitcoin falls and finds support above the breakout level, a fresh uptrend is likely to be in place. Bitcoin will resume an upward move as price finds support above the bre4akout level. Meanwhile, Bitcoin is at level 58 of the Relative Strength Index period 14. It indicates that the crypto is in the bullish trend zone and capable of rallying on the upside.
El Salvador’s Bitcoin Law Will Pose Risk To Local Insurers as It Revisits $42,000
Fitch Ratings is a global credit rating agency. It has warned El Salvador against adopting Bitcoin as legal tender. The agency indicated that crypto assets will cause systemic risks for the Latin American nation. Secondly, there is inherent volatility and operational risks for citizens associated with the crypto ecosystem. El Salvador’s Legislative Assembly passed President Nayib Bukele’s controversial “Bitcoin Law,” in June. The law allows Bitcoin as a legal tender alongside United States dollars starting Sept. 7, 2021. In other words, Salvadoran businesses will be required to accept Bitcoin in exchange for goods or services.
Meanwhile, BTC’s price is in a downward move as it revisits $42,000.The crypto is expected to reach a low of $42,000. However, the bears are having difficulty in breaking below the $44,000 support. Nevertheless, on August 17 downtrend a; a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that Bitcoin will fall to level 2.0 Fibonacci extension or level $42,711.10. From the price action, the bears are finding it difficult to break below the $44,000 support.
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