The bullish trend is much higher, so this is still the most likely scenario. If Bitcoin loses the USD 30,000 level, there would be sales of at least USD 23,800 per unit.

The bears recently caused fear in the cryptocurrency market but the price of Bitcoin is recovering very strongly. This situation reaffirms the importance of the big demand zone close to USD 32,000.

Many analysts in the ecosystem are concerned that there has yet to be a full recovery from the short-term trend.

The risk of losing the USD 30,000 level persists due to the bulls’ lack of determination to recover that of USD 42,000. There is no support between this level and USD 20,000, which could lead to chaos if bears succeed in taking control.

However, the bullish trend is much higher, so the current decline seems to suggest a simple correction. Therefore, that scenario is the one that remains the most likely.

Instead of worrying so much about the future, it is better to react to what is happening now. The price charts in different time frames provide information in this regard.

Technical Analysis during Bitcoin’s Price Recovery

The bulls have had a great performance on the daily time frame. That started after the support zone near USD 32,000 was put to test again.

A strong bearish rejection and a bullish engulfing candlestick indicate that the short-term trend could pass into the hands of the bulls.

However, to confirm that, it would be necessary to see the price break the resistance at USD 40,500. There is still a risk that the price of Bitcoin will go from USD 32,000 back to USD 30,000.

If the pioneering cryptocurrency reaches a price of USD 30,000, that would be a determining test. If it loses this level, there would begin to be sales of at least USD 23,800 per unit. Below that, the support is at USD 19,500.

However, recent Bitcoin’s price action reaffirms the bullish view for the near future. Analysts believe that the cryptocurrency has already reached a bottom after the general market collapse on May 19^th.

Due to the strong defense of the support level at USD 32,000, probabilities are between 40% and 60% in favor of the bulls now. If this situation continues, the price will break above USD 40,500, giving way to a new push towards all-time highs.

Bitcoin Price Weekly Chart

The current weekly candlestick seems to indicate that the bulls were simply waiting. Although there were problems with resuming the trend, the current candlestick shows the control of the bulls.

The previous bullish force could surprise many people, which it seems to be starting to do now.

The recent drop means a simple pullback for the great strength that the bulls have had in recent months. USD 64,000 does not seem to be the top of this bullish cycle, even considering a very good outlook for risk assets.

Some negative factors are the large printing of money by the United States, and the increasing speed with which it circulates in the economy. The apparent return to normality that the world is experiencing may be the reason for this situation.

By Alexander Salazar

MPs fear their countries lag in new developments. Legislators from Argentina and Brazil also open new doors of support for bitcoin.

El Salvador’s move to adjust its legislation to adopt bitcoin (BTC) as a legal tender is a great highlight and is waking the interest in other nations of Latin America. Now congressmen from Panama and Paraguay revealed their intentions to propose bills to make cryptocurrency a vital part of their financial system and monetary policies.

For Panamanian deputy Gabriel Silva, El Salvador’s decision could open a whole new world of technological development, so his country should take the same actions. The legislator assured this Monday, June 7, that he will propose legislation to encourage the use of cryptocurrencies.

This event is, and Panama does not want to be left behind. Panama desires to become a true technology and entrepreneurship hub, so the country has to support cryptocurrencies. Silva said through Twitter that he will be preparing a proposal to present at the Assembly.

Following Silva’s intentions, Paraguayan deputy Carlos Rejala took a supporting posture on the potential of the adoption of bitcoin and cryptocurrencies. The legislator assured that Paraguay could benefit from the ecosystem of digital assets and its market of two trillion dollars, which would help to improve the sending of remittances and new upcoming investments.

According to Rejala, Paraguay’s Gross Domestic Product could increase to double digits if Bitcoin-related companies start investing in the nation. It is important to start talking and, above all, do things that boost the financial system with projects that connect governments with global innovations that benefit more people,” said the Guaraní parliamentarian.

Argentina and Brazil are Moving Closer to Bitcoin

While from Panama and Paraguay voices begin to sound of potential adoption of bitcoin, in Argentina and Brazil some deputies are beginning to show their sympathy for the cryptocurrency created by Satoshi Nakamoto.

In the Amazon nation, legislator Fabio Ostermann updated his Twitter profile with an image wearing laser eyes or “laser eyes” in support of bitcoin. Ostermann was followed by Congressman Gilson Marques who also made his change public and released the hashtags #bitcoin and #tothemoon referring to a sudden growth in BTC’s price.

In Argentina, the parliamentarian Francisco Sánchez, deputy for Neuquén, now has the “laser eyes”. He updated his profile on the social network, and the official shared a message saying that he could not believe it, but that is the way it is.

Unlike the pronouncement of the legislators of Panama and Paraguay, in the case of the Brazilians and the Argentine, there are no further details about potential proposals to adopt bitcoin as legal currency in their nations. However, the display of their endorsement of BTC draws attention as they could pave the way for more friendly laws in terms of cryptocurrency.

Last Saturday, June 5, the president of El Salvador, Nayib Bukele, announced that his country would start to face a regulatory process that would allow it to adopt bitcoin as legal tender.

By: Jenson Nuñez

Miguel Kattán stated that there will be no de-dollarization of the economy. The project that President Bukele will send to Congress remains a secret.

El Salvador’s President Nayib Bukele’s proposal to adopt bitcoin as legal tender will not mean that the dollar will cease to be useful in the Central American country’s economy.

The statement comes from the Secretary of Commerce and Investment of that nation, Miguel Kattán. The statement takes part in a set of statements collected by the El Mundo newspaper of El Salvador. The official intended to reassure the population, fearful of a complete turn towards a bitcoin standard.

The Secretary of Commerce and Investment clarified in a press conference on June 7, 2021, that cryptocurrency will not replace the dollar, but will become a new means of payment. This does not imply a de-dollarization of the economy, as reiterated.

Kattán added that President Bukele will send the project to the Legislative Assembly this week to grant bitcoin legal tender status remains hidden. However, he announced that this regulation would permit the creation of a bitcoin opt-in economy (“added to the list”), where the dollar will keep having a protagonist role in his country’s economy even if Bitcoin gets added to the list of means of payment.

In this regard, Kattán clarified that what the law is going to say is that citizens can pay (in case the one who is charging accepts the bitcoin and the one who is paying wants to seal the trade with bitcoin), there is no difference, Its relationship will always be with the dollar.

El Salvador’s Economy would ever meet prices in Bitcoin?

The Secretary of Commerce offered these statements during a ceremony that took place at the Central Reserve Bank (BCR). The official said that the forecasts made on social networks alleging that the goods will have prices in satoshis will not be fulfilled.

Kattán talked about the confusion that this event is generating in the population. He said on the matter: “Someone said yesterday, how is he going to pay 0.00000001 bitcoin in tomato? How will the transaction be? What you will pay is the USD 0.20 that the tomato is worth. Point. That figure is what the person will receive $ 0.20 in bitcoin.”

During his speech, the official clarified that the bill that would recognize bitcoin as legal tender in El Salvador would come with regulations and protective measures against money laundering.

Kattán said that bitcoin brings El Salvador an opportunity for growth. He also highlighted the success of a community known as “Bitcoin Beach ” where hotels, shops, restaurants, and even the water company receive bitcoin through the low-cost Lightning network.

The bitcoin adoption project would find a faster route in the El Salvador congress. A group of deputies has already supported the decision; others have even changed their Twitter profile to add an image with laser eyes or “laser eyes”, a bitcoin trend in support of BTC.

By: Jenson Nuñez

The drop in Bitcoin’s mining power occurred after the authorities banned BTC miners in China’s province of Qinghai. The last drop in the hash rate that took place in April this year was 37%.

Since April, the hash rate of the Bitcoin (BTC) network has shown instability, falling considerably until saturating the mempool. There was recently a drop of about 40% in the hash rate, the worst since May 2017, when it plummeted by 55%.

In recent days, the computing power of the network went from 178 EH/s to 107 EH/s, according to data from Coinwarz. This drop is slightly larger than the one that occurred in April, when the hash rate fell by 37%.

Due to the drops in the Bitcoin hash rate, more time may be necessary to mine the blocks within the network. This situation causes a bottleneck in incoming transactions, which implies an increase in mining fees.

Activity on the Bitcoin network had recently decreased, emptying mempools, and reducing fees to an average of up to 1 sat/vbyte. After the hash rate fell, fees have returned to an average of 18 sats/vbyte.

The network could begin to suffer agglomerations of pending transactions due to the low computing power, compared to the difficulty of mining. This situation could lead mining fees to increase even more and users will have to wait for the next adjustment in difficulty. On the contrary, if the hash rate of the network increases again, the cost of the fees will be lower.

The recent drop in the hash rate occurred three days before the end of the next period of adjustment in difficulty. Meanwhile, the difficulty adjustment takes an average of the entire period of 2,016 previous blocks. This could mean that the decrease in mining difficulty will be slight in the next period.

The Ban on Cryptocurrency Mining Leads to the Drop in Hash Rate

The recent bans on Bitcoin mining in China’s provinces of Qinghai and Xinjiang seem to have caused the hash rate to drop. This happens after the measures that the Chinese government imposed to combat and punish the extraction of cryptocurrencies within the territory.

According to the authorities of the Asian country, the measures against cryptocurrency mining are intended to reduce the emission of carbon dioxide (CO2). They seek to avoid the indiscriminate consumption of energy from burning fossil fuels like coal, oil, and gas.

Some mining pools, such as Antpool, saw their hash rate drop by around 25%. That happened after the announcement of the closure of operations of cryptocurrency miners in China.

According to data from the mining map by the University of Cambridge Bitcoin, China accounted for 65% of global mining in April. During the last drop in the hash rate in April, the price of the pioneering cryptocurrency fell close to 14%. At the time of writing this article, Bitcoin is trading at around USD 37,500 and went up by 2.3% in the last 24 hours.

By Alexander Salazar

Twitter CEO Jack Dorsey pointed out that merging the social network with the Lightning Network could happen very soon. The Bitcoin micropayment network could also merge with BlueSky.

Social media giant Twitter could soon integrate with the Lightning Network, the second-layer solution that facilitates Bitcoin micropayments. Twitter CEO Jack Dorsey, one of the most respected Bitcoin advocates in the crypto community announced the news.

Dorsey gave the information in a tweet responding to a user requesting about building LN [Lightning Network] on BlueSky or Twitter. BlueSky is a Dorsey side project that intends to decentralize social media. The CEO responded to the request saying that a future merge is possible, it is just a matter of time.

Lightning Network (LN), developed by Lightning Labs, is currently one of the main alternatives to balance the scalability and speed problems faced by the Bitcoin network.

Using a similar concept to the settlement systems implemented by Visa and Mastercard, which quickly set a verification procedure over the buyer’s funds and the seller’s request before settling the transaction, LN streamlines makes the transactions through the Blockchain using a second layer protocol and reduces costs by routing transactions through channels without implementing the Bitcoin blockchain to verify each trade.

Commitment to Bitcoin, the Main Cryptocurrency

Dorsey had taken to Twitter to share a link to the wallet and encrypted messaging service Sphinx Chat, which operates on the Lightning Network, to prompt the user to propose the integration.

The CEO did not bring further details about whether the Lightning Network would be integrated with Twitter or BlueSky, the project he launched in December 2019 to build a decentralized standard for social networks like Twitter.

Earlier this year, Dorsey invited technologists and developers to join efforts and contribute to the project. Since then, many developers have joined him, including former Zcash software engineer Jay Graber, who has already shown a review of the first BlueSky protocol.

Dorsey, who is a Bitcoin advocate, also serves as the CEO of payments firm Square, which has received more than 8,000 bitcoins, valued at close to $ 300 million, for the treasury. Square also has a cryptocurrency trading service, which has been a very successful feature when it comes to generating relevant profits for the company.

Although Dorsey did not provide enough details about such an initiative, it does not seem convincing to foresee that Twitter might one day bring more expansive support for Bitcoin, given Dorsey’s commitment to the crypto-world. He recently revealed, while speaking at the Bitcoin Miami conference, that he would be ditching Square and Twitter for Bitcoin if necessary.

He said on the matter that if he wasn’t on Square or Twitter, he would be focusing on Bitcoin. The comment came right after the CEO revealed the advances of his plans to develop a hardware Bitcoin wallet and invited the community to join the project.

By: Jenson Nuñez

The IMF says that it is closely following the events that are taking place in El Salvador. According to the representative of the international agency, “crypto assets can pose significant risks.”

Gerry Rice, a spokesman for the International Monetary Fund (IMF), recently spoke about the adoption of Bitcoin as legal tender. He argued that the legalization of the cryptocurrency “poses a series of macroeconomic, financial and legal problems.” He referred to the law that El Salvador recently passed, recognizing the first cryptocurrency as legal tender in that nation.

The official told Reuters that they are “closely monitoring developments and [will continue their] consultations with the authorities.”

The spokesperson for the financial agency considers that “crypto assets can pose significant risks.” For that reason, he argues that effective regulatory measures are very important. In that sense, Rice said that the IMF will meet with Bukele to discuss the law on Bitcoin (BTC).

Alina Carare, the IMF’s chief of mission for El Salvador, similarly addressed the matter. She said that they are “following the news and will have more information as the consultations with the authorities continue.”

El Salvador enacts the law on Bitcoin while they conduct negotiations with the IMF, seeking a program of almost USD 1 billion.

The Legalization of Bitcoin Could Hurt the Relationship with the United States

Some people fear that making Bitcoin legal tender may undermine the dialogue between El Salvador and the IMF. For example, Donato Guarino, an executive at Citibank, sees “the Bitcoin headlines in El Salvador as noise that could complicate discussions.”

According to some analysts, the decision could also affect El Salvador’s international relations. For example, Vlad Costea believes that this is “an experiment that is going to end badly.”

A sector of the Salvadoran press, which opposes President Bukele’s management, gave its opinion on the matter. They consider that the recognition of BTC as legal tender could harm the relationship with the United States. They believe it unlikely that the Joe Biden administration is unaware that such an indebted Latin American country uses the US dollar less than before.”

The IMF Calls for International Cooperation to Regulate Bitcoin

The International Monetary Fund has already expressed its views on Satoshi Nakamoto’s cryptocurrency on other occasions. In 2018, the international entity stated that cryptocurrencies can play an important role in the international economy. They said that they “can completely change the way to sell, buy, save, invest, and pay bills.”

Given the relevance of Bitcoin in the financial sphere, the organization called for international cooperation to regulate its use.

Two months ago, IMF chief economist Gita Gopinath ruled out the possibility that BTC was a competitor for legal tender. El Salvador’s recent decision seems to have refuted her words.

“Legal tender needs to have a stable value. Therefore, I would say that many of the existing cryptocurrencies cannot even fit the definition of money. Cryptocurrencies are very speculative investment assets, which is fine,” said Gopinath.

By Alexander Salazar