Bitcoin Still Cautious

The World Bank rejected El Salvador’s request to help the country use bitcoin as a legal tender in its national economy.
According to a report released by Reuters on Wednesday, the bank, which offers grants and loans to low-income countries, said it is always committed to helping El Salvador in terms of currency transparency and the regulatory process.
Although the government has approached us for help with bitcoins, the World Bank cannot support such a thing given the shortcomings in environmental protection and transparency, a World Bank spokesman said.
Also yesterday, Salvadoran Finance Minister Alejandro Zelaya said that his country turned to the bank for technical assistance to apply bitcoins and the US dollar.
El Salvador officially recognized the crypto as a legal tender earlier this month when President Naiib Bukele proposed a law that was eventually passed by a large majority in the state legislature.
Looking at the chart on the four-hour time frame, we see that the price of Bitcoin has stopped in the zone around $ 40,000-41,000 at 38.2% Fibonacci level. Making a smaller pullback to $ 38,000. At that place, we were greeted by a moving average of MA200 and MA20 and MA50. For now, we don’t see a lower low on the chart, but we have a break from the previous high from May 26 to $ 40,800, which can give us at least a little confidence that Bitcoin will gather strength and continue above the 38.2% Fibonacci level rising to 50.0% Fibonacci level at $ 44388. If we fail to overcome the current resistance, then we go back down to the 23.6% Fibonacci level at $ 36,277. If Bitcoin makes a new lower low, it is a sign to us that we are still in a bearish trend. The target for the new low is below $ 34,750. We can look for additional support in a smaller trend line of support, and each break below indicates the weakness of the Bitcoin price and the increasing fear of a potential price collapse.