Bitcoin resumes rally towards previous ATH despite mounting tensions in El Salvador

Bitcoin resumes rally towards previous ATH despite mounting tensions in El Salvador
El Salvador protests against Bitcoin’s legal tender status, Source: Reuters.
  • Protestors demand the removal of Nayib Bukele from El Salvador’s Presidency.
  • Despite mounting tensions in the first nation that legalized Bitcoin, BTC/USD pair approaches its previous all-time high.
  • Momentum remains bullish amid first Bitcoin ETF launch.

KOLKATA (CoinChapter.com) – Bitcoin rallied amid fresh protests against the top cryptocurrency’s legal tender status in El Salvador. After a bland weekend and a 6.3% drop from the $63,000 local high to $59,000, buyers resumed the BTC/USD pair’s rally beyond $62,000 even as El Salvador protestors accused President Nayib Bukele of his dictatorial stance.

Related: President Nayib Bukele calls himself “a dictator” as El Salvador buys the Bitcoin (BTC) dip

El Salvador Calls For Bukele’s Removal

President Bukele’s recent political moves have come under fire from the El Salvador public.

Protestors called for the removal of the El Salvador President on Sunday with “What does El Salvador want? Get rid of the dictator!” slogan chants. The first leg of protests took place in September when Mr. Bukele announced Bitcoin as a legal tender alongside the US dollar and fired judges belonging to the constitutional panel of the nation’s Supreme Court and the then-attorney general.

Related: El Salvador creates a $150 million Bitcoin trust while citizens protest

The President’s decision to appoint replacements (on good terms with him) evinced power concentrating behavior. The new Supreme Court panel then stoked the possibility of Mr. Bukele returning as President for the second consecutive term. National governments and top international human rights groups branded the move as unconstitutional.

“We are totally losing rights because today they do not respect the laws. Here, what’s done is the will of Nayib. If he raises his hand, all the deputies approve it and there is no law and no legal process that is respected.”

said Rosa Granados, a labor union member and a particpant in the protests

Despite all the hue and cry, Bitcoin marched upwards yet again, nearing its previous all-time high.

Bitcoin Resumes Uptrend But Pullback Possible

DURING MONDAY’S EARLY MORNING TRADING SESSION, the BTC/USD pair climbed 6%, rising from $58,881 to $62,826. However, sellers showed up yet again to book profits off the local top. As a result, bitcoin analysts anticipate a pullback before the benchmark cryptocurrency’s rally to the previous all-time high of $65,000 and possibly beyond.

“Now as Bitcoin approaches the local resistance a pullback from there on has a higher likelihood, once this pullback has completed it will be important on how Bitcoin approaches the levels in the structure mainly the confirmational-bounce-cluster that is marked in blue in my chart.”

noted TradingView-based BTC analyst VincePrince.
Bitcoin could experience a pullback to the $57k-58k range.
Bitcoin could experience a pullback to the $57k-58k range. Source: VincePrince/TradingView

However, suppose the BTC/USD pair remains buoyant above the $57,650-58,750 support range and above the 20-day exponential moving average (EMA) wave. In that case, Bitcoin stands to shoot to a new all-time high, observed VincePrince.

“Taking all these factors into consideration there is good potential to consider a confirmational formation above the upper boundary here which can take the shape of a bull-flag or a triangle-formation, once this formation completed and bullish continuations show up it will lead to the breakout into the new all-time-high .”

BTC/USD Technical Setup

Even with the ongoing selloff, Bitcoin’s relative strength index is largely neutral, indicating that there’s an avenue for the rally to resume. Furthermore, RSI followed an uptrend since BTC/USD dropped to sub-$40,000 levels during the September selloff.

Bitcoin remains bullish
Bitcoin remains bullish. Source: BTCUSD on TradingView.com

Buyers could wait for a further dip to the oversold region (below 50) or 50 for entering new positions. But even at the current spot rates, Bitcoin is still a good buy, especially since trading for the first BTC ETF futures product is set to debut this week. Also, because RSI and Bitcoin both mirror each other’s trends (upward momentum).

Related: Bitcoin breaks above $59K for the first time since May on BTC ETF FOMO

Which in turn will provide a bullish impetus. Overall the BTC/USD trend remains bullish, with a high probability of the top cryptocurrency surpassing its previous all-time high.

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