Bitcoin and Ethereum Under Bearish Pressure

Bitcoin Chart Analysis

Looking at the chart on the daily time frame, we see that the price of Bitcoin is still under pressure falling below the 200 daily moving average. We are currently testing a 20-day moving average. If the price fails to stay above, we can then expect the pullback to continue at the 38.2% Fibonacci level to $ 42,650. Below that, a 50-day moving average will greet us in the $ 40,000 zone. For the bullish scenario, we need positive consolidation and a renewed rise in the price of Bitcoin above the 200-day moving average. Our next hurdle is the 50.0% Fibonacci level at $ 46,950. Moreover, the potential continuation above us could lead to $ 50,000, close to 61.8% Fibonacci levels.

Ethereum Chart Analysis

Looking at the Ethereum chart on the daily time frame, we see that the price is currently testing a 20-day moving average, and it is possible to see a further price drop to 38.2% Fibonacci level at $ 2725. Below we can find support in both the 200-day and 50-day moving averages. For the bullish trend, we need positive consolidation above MA20 and 50.0% Fibonacci levels at $ 3040. Further continuation leads us to the zone around $ 3300, close to 61.8% Fibonacci level at $ 3360.

Market Overview

El Salvador’s central bank, the Banco Central de Reserva (BCR), has released draft regulations on how banks should handle bitcoins.
Two documents were published on August 17 for consultations. In consultations, banks and financial institutions receive instructions on how to offer bitcoin-related services to their clients.
The first, entitled “Guidelines for approving the operation of the digital wallet platform for bitcoins and dollars” (in Spanish), defines BTC as a legal tender according to the recently drafted Law on Bitcoins, which was adopted by the legislature of El Salvador on June 9. see how the state will officially adopt digital assets on September 7.
The second document, entitled “Technical Standards to Facilitate the Implementation of Bitcoin Law,” is a longer and more detailed version of the first document.
Financial entities must contact the central bank to offer digital wallets, the guidelines state.

Bitcoin in El Salvador

According to Alejandro Zelaja, the use of cryptocurrency will be optional. In fact, companies will not face penalties if they do not accept them.
The use of bitcoin and digital wallets in El Salvador will be “completely optional.”
Companies that do not accept cryptocurrencies will not be sanctioned. The Minister of Finance of El Salvador, Alejandro Zelaya, stated this on Tuesday.
In a television interview during the Frente a Frente program hosted by journalist Moises Urbina, Zelaya said that the dollar will remain the main reference currency in the country. In fact, it will be the one that companies, the government, and everyone else will use for their accounting.
Zelaya’s comments were contrary to Article 7 of the law on bitcoins, which was adopted in June. The law prescribes that “every economic agent” must accept bitcoin as a payment method.

Conclusion

The world’s largest cryptocurrency by market capitalization fell 2% a day after reaching a 24-hour high of about $ 45,986, according to CoinDesk. At the time of printing, bitcoin was trading for about $ 44,400.
Moreover, Bitcoin fell back below the 200-day moving average, undoing a previous breakout, the witness said on August 13.
“We still have the support of 44,000 dollars and 42,000 dollars. This is the limit in the sand for short-term momentum,” Jon de Vet, director of information technology at the digital property company Zerocap, told CoinDesk via Telegram.
The company points out that the flows of safe havens are intensified by the rising instability in Afghanistan. The withdrawal of the American army triggered this rise. Additionally, there are lingering worries about the variant of the Covid-19 Delta variant.
In China, with the slowdown in the economic and technological sectors also affecting crypto markets, liquidity hacking has little impact. It is a sign of the continuation of the bull’s feeling, the company noticed.
“A daily break below $ 42,000 would give some confidence to the bears, but overall, we believe the price will stay above this level over the next week,” De Vet said.