El Salvador: All adult citizens are eligible to receive $30 worth of Bitcoin — analysis, June 28 | Via Bitvalex | Capital | June 2021
According to The Block report, on June 24, Citigroup, the third largest banking institution in the United States, officially launched its digital asset division within its wealth management division. The new division called Digital Assets Group aims to help Citigroup’s clients invest in cryptocurrencies, stablecoins, non-fungible tokens (NFT) and central bank digital currencies (CBDC).
On the same day, Andreessen Horowitz, one of the leading venture capital firms in Silicon Valley, California, announced the “Crypto Fund III”-a new $2.2 billion fund for investing in crypto networks and blockchain projects and teams. This is the largest crypto fund launched by the investment company since 2018.
However, the good news related to the adoption of cryptocurrencies in the past week is not only reflected at the level of institutional investors. On June 25, El Salvador’s President Nayib Bukele announced that in order to promote Bitcoin as a means of payment, if every adult citizen downloads and registers a government-developed encrypted wallet, they will be eligible for $30 in free Bitcoin.
The crypto community praised the news from El Salvador. Binance CEO Changpeng Zhao (CZ) emphasized that this is another step towards mass adoption of Bitcoin:
In addition, CZ emphasized that this is hard currency, not printed out of thin air.
With the massive popularity of Bitcoin, Thomas Farley, the former president of the New York Stock Exchange, said in an interview with CNBC, “In order for Bitcoin to surpass gold one day, it must become an accepted form of currency.”
“I have no doubt [Bitcoin] It will rise, and in the long run it will fall-I still think this is a trend from bottom left to top right, and I think we will see this in five years,” he added.
After a week of consolidation, the market started to increase intraday prices on Monday, reflecting the positive news. According to Coin360.com, the price of a Bitcoin is 29,277.89 Euros (+5.60%), an Ethereum-1,712.49 Euros (+10.20%), a DOGE-0.2165 Euros (+5.28%), and a UNI ——14.70 Euro (+7.47%):
Let us now analyze the price chart of the major cryptocurrencies against the euro in the most noteworthy time frame.
Bitcoin / Euro
In the weekly chart (1W), BTC/EUR forms another hammer Candlestick formation:
This hammer It is a typical candlestick pattern at the end of the correction, indicating a potential trend reversal.
On the daily chart (1D), BTC/EUR continues to consolidate in a wide range:
However, as can be seen from the chart, the 360-day moving average (Horse 360) Has entered the range and is currently at its lower limit. In theory, Horse 360 It should provide solid support for the price of Bitcoin.
If we consider both the weekly and daily time frames, the chances of a price rebound seem to be increasing.
In the weekly chart (1W), ETH/EUR has formed Three black crows Candlestick formation:
This is a common bearish pattern, indicating that more people have sold assets than bought assets for three consecutive weeks. This is why the bulls should be very cautious.
In addition, in the daily time frame (1D), ETH/EUR has fallen below Trendline of Ascending channel — Another bearish signal:
Nevertheless, we believe that if the price of Bitcoin starts to rise, then Ethereum will return to Ascending channel Because there is a high degree of correlation between the prices of major cryptocurrencies.
Similar to Bitcoin’s weekly chart (1W), DOGE/EUR has been formed hammer Candlestick formation and:
We think this hammer As an initial signal pointing to a potential price rebound. In our opinion, if DOGE/EUR breaks through the resistance line in the 4-hour chart (4H), some aggressive traders will start to open long positions in an attempt to seize this potential rebound:
Unity / euro
In the 4-hour chart (4H), UNI/EUR is breaking through from the current price decline. Local low From the end of May:
In theory, if the prices of other top cryptocurrencies start to rebound, Uniswap will try to break the resistance line; in addition, some very aggressive traders may enter the market by opening long positions. However, we believe that this type of transaction is risky.
This analysis only provides information and does not constitute investment, financial, trading or any other type of advice, and you should not regard any content of Bitvalex as such advice. Bitvalex does not recommend that you buy, sell or hold any cryptocurrency. Before making any investment decision, you are solely responsible for conducting your own due diligence and consulting consultants.