FX.co ★ Technical Analysis of BTC/USD for September 20, 2021

Crypto Industry news:

El Salvador's adoption of Bitcoin as legal tender has ignited national ambitions in South and Central America. In Paraguay, Congressman Carlitos Rejala hinted in a recent tweet that Bitcoin would be the "official currency" if he became president in 2023.

This was not the first time Rejala had expressed his support for a royal coin. A few months ago, a Paraguayan congressman announced that he would introduce a law to legalize Bitcoin in his country.

It should be noted here that the national currency of Paraguay, the Paraguayan Guarani (PYG) has been fighting inflation since 1944. Even though in some countries suffering from inflation, people are resorting to Bitcoin, this does not seem to be the case in Pargay.

According to the Useful Tulips comparison with Paxful and LocalBitcoins data, Paraguay recorded a negligible volume of currency transfers in the last two years compared to other Latin American countries. On September 2, its all-time volume was $ 1,836, while Venezuela hit $ 1,795,366.

Technical Market Outlook

After the false breakout above the 50% Fibonacci retracement level seen at $48,044, the BTC/USD reversed over the weekend and is moving lower towards the technical support seen at the level of $44,219. The nearest technical support is seen at $44,219 and $43,159. Any violation of the level of $41,794 would likely open the road to lower levels and the downwards momentum might increase then even more. The weak and negative momentum supports the short-term bearish outlook for BTC.

Weekly Pivot Points:

WR3 - $55,433

WR2 - $52,068

WR1 - $51,114

Weekly Pivot - $46,800

WS1 - $44,786

WS2 - $41,130

WS3 - $39,325

Trading Outlook:

According to the long-term charts the bulls are still in control of the Bitcoin market, so the up trend continues and the next long term target for Bitcoin is seen at the level of $70,000. The next mid-term target is seen at the level of $59,506. This scenario is valid as long as the level of $30,000 is clearly broken on the daily time frame chart (daily candle close below $30k).