Bitcoin is pausing above $ 46,000 as it resumes its downward correction – September 7, 2021
On September 5, BTC price fell to the $ 49,693 support as it resumed the downward correction. BTC / USD rallied above current support as the bulls broke the resistance at USD 50,200. Bitcoin rebounded to a high of $ 51,900, but the uptrend was stalled below the resistance zone of $ 52,000. After two days of fluctuation below the resistance zone, the bulls broke above the $ 52,000 high. Today the price of BTC fell to the previous low of $ 43,220.
Resistance Levels: $ 50,000, $ 51,000, $ 52,000
Support level: $ 40,000, $ 39,000, $ 38,000
BTC / USD – daily chart
After breaking above the $ 52,000 high, buyers will push Bitcoin to the $ 55,000 high. In previous price action, the bulls broke above the $ 50,000 high but failed to sustain bullish momentum above. There have been several false breakouts above the psychological price level. Nonetheless, the BTC price has stayed above the psychological price level for the past 48 hours. This price movement indicates a possible resumption of the uptrend.
Meanwhile, BTC / USD is approaching the overbought region of the market. The uptrend faces some upside resistance as Bitcoin falls. The bull will try to resume the uptrend after the retracement. Today, at the time of writing, BTC price has fallen to the low of $ 46,162. The downward correction has continued as Bitcoin falls below the USD 50,600 support. The RSI has fallen to level 46, suggesting that Bitcoin is in the downtrend zone and capable of falling.
El Salvador will buy 200 BTC before September 7th
Nayib Bukele is the President of El Salvador who has confirmed that his government has bought the first 200 Bitcoin (BTC). The 200 BTC purchase is part of a new $ 150 million Bitcoin fund that El Salvador Congress voted for. The purpose is to make it easier to convert BTC to US dollars in advance of the implementation of the new law. Currently, the BTC purchase was worth over $ 10.36 million. This is in preparation for the introduction of a new law on September 7th that will make cryptocurrency legal tender. Today El Salvador will be the first country in the world to recognize Bitcoin as legal tender. The government made this decision against resistance from local groups. The government believes the cryptocurrency will have a positive impact on the economy and society.
BTC / USD – 4-hour chart
Today the price of BTC soared to a high of $ 52,888 but is rejected at the recent high. Currently, BTC price has fallen to the low of $ 43,220 as the bulls bought the drops. It corrected to a high of $ 47,112 as the cryptocurrency resumed consolidation above current support. Today the candle indicates a long bearish tail. The long tail suggests that there is strong buying pressure below current support.
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