Bitcoin Video 10.06.21.
Bitcoin Pulls Back After Yesterday’s Strong Upside Move
Bitcoin has recently managed to get back to the $37,000 level and made an attempt to settle above the resistance at the 20 EMA at $37,900 as it reacted to Salvador’s decision to make the cryptocurrency legal tender in the country.
El Salvador became the first country in the world to adopt Bitcoin as legal tender, so it’s a major development for the crypto market. While Salvador’s economy is small, and the country is dependent on remittances from abroad, its decision is big milestone which cannot be ignored by crypto traders.
At the same time, it remains to be seen whether Bitcoin will be able to develop additional upside momentum in the near term. Today, the U.S. will release inflation data for May which is expected to show that Inflation Rate increased by 4.7% on a year-over-year basis. If inflation rises faster than expected, riskier assets will find themselves under pressure, which will be bearish for Bitcoin and other cryptocurrencies.
Bitcoin is currently trying to stay above the $37,000 level. RSI remains in the moderate territory, and there is plenty of room to gain additional upside momentum. If Bitcoin settles above $37,000, it will get to another test of the resistance at the 20 EMA at $37,900.
A move above the 20 EMA will push Bitcoin towards the key resistance level at $40,000. If Bitcoin gets above this level, it will continue its upside move and head towards the next resistance at $42,000.
On the support side, the nearest support level for Bitcoin is located at $35,000. If Bitcoin declines below this level, it will move towards the next support which is located at $32,000. A successful test of the support at $32,000 will push Bitcoin towards the support at the psychologically important $30,000 level.
For a look at all of today’s economic events, check out our economic calendar.