Despite the hullabaloo around Bitcoin getting adopted as an official currency of El Salvador (or perhaps because of it), the cryptocurrency sold off sharply from previous-support-turned-resistance at 53,000 this week.
Now, bulls and bears have drawn their lines in the sand, with support likely near the 200-day EMA and previous resistance in the 42,000 area and resistance from earlier this week clearly looming up at 53,000. Looking ahead, the cryptocurrency may due for more some consolidation as traders await more details on the path of the pandemic, the health of the global economy, and most importantly, central banks’ interpretation of those factors.
A break below 42K could shift the bias back in favor of the bears for an eventual move back down toward the yearly low in the $30,000 area, whereas a bullish breakout above 53K would open the door for a continuation toward record highs above 60K in time.
Now, bulls and bears have drawn their lines in the sand, with support likely near the 200-day EMA and previous resistance in the 42,000 area and resistance from earlier this week clearly looming up at 53,000. Looking ahead, the cryptocurrency may due for more some consolidation as traders await more details on the path of the pandemic, the health of the global economy, and most importantly, central banks’ interpretation of those factors.
A break below 42K could shift the bias back in favor of the bears for an eventual move back down toward the yearly low in the $30,000 area, whereas a bullish breakout above 53K would open the door for a continuation toward record highs above 60K in time.