Key Highlights:
Bitcoin surpasses $40,000, El Salvador reports $131 million domestic BTC investment.President Bukele emphasizes long-term commitment despite market volatility.El Salvador plans Bitcoin education in public schools in 2024.Crypto Industry News:
According to a December 4 post by El Salvador President Nayib Bukele, domestic investment in Bitcoin currently stands at $131 million, generating a net profit of $3.6 million, for an overall gain of 2.84%.
"Of course we have no intention of selling; that has never been our goal. We are fully aware that the price will continue to fluctuate in the future; this does not affect our long-term strategy" - said Bukele.On December 1, Bukele resigned as president of El Salvador after receiving approval from the country's legislative assembly, allowing him to step aside to focus on his 2024 re-election campaign. During Bukele's first term, El Salvador purchased BTC through the national treasury in September 2021, with an initial investment of $10.3 million. However, Bitcoin's price quickly dropped by over 50% during the bear market.
Bukele's Strategic Moves: Bitcoin Amidst Political Transition
Still, Bukele continued to make regular purchases of the country's Bitcoin investments, making recurring purchases throughout 2022. At one point, the country's Bitcoin holdings dropped to as low as $45 million from a book value of $103.9 million.
In 2021, El Salvador became the first country to adopt Bitcoin as a legal means of payment. However, the International Monetary Fund warned that Bitcoin's risks for El Salvador "are not materializing" due to limited cryptocurrency adoption in the country. Next year, El Salvador plans to introduce Bitcoin education in public schools.
Technical Market Outlook:
The BTC/USD pair had made a new swing high at the level of $44,517 as the bulls are in charge of the market. The next target for bulls is the level of $48,200, which is the weekly high from 28 March 2022. This level might be hit soon as the momentum is still strong and positive, because the RSI indicator on the H4 time frame chart hovers above the level of 70 points. Nevertheless, please notice the Bearish Doji candlestick pattern made on the top of the last up wave at the level of $44,517 which might indicate a potential pull-back or a correction soon.
The intraday technical support is seen at the level of $43,336 and the intraday technical resistance is located at the swing high located at $44,517. The key short-term demand zone the H4 time frame chart is located between the levels of $38,477 - $38,029, so only a sustained breakout below this zone would change the short-term outlook to more bearish.
Weekly Pivot Points:
Pivot Points are key price levels used in technical analysis to identify potential trend reversals, support, and resistance levels in financial markets.
WR3 - $48,468
WR2 - $43,348
WR1 - $42,881
Weekly Pivot - $40,228
WS1 - $38,761
WS2 - $36,108
WS3 - $31,989
Trading Outlook:
The next target for the bulls is set at $48,200 as the potential for a sustained long-term uptrend remains, provided the critical level of $19,572 is not decisively violated. The key long-term technical support is located at the level of $32,829 and $31,790.
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Important:
The beginners in forex trading need to be very careful when making decisions about entering the market. Before the release of important reports, it is best to stay out of the market to avoid being caught in sharp market fluctuations due to increased volatility. If you decide to trade during the news release, then always place stop orders to minimize losses.
Without placing stop orders, you can very quickly lose your entire deposit, especially if you do not use money management and trade large volumes. For successful trading, you need to have a clear trading plan and stay focuses and disciplined. Spontaneous trading decision based on the current market situation is an inherently losing strategy for a scalper or daytrader.