FX.co ★ Technical Analysis of BTC/USD for December 7, 2021

Crypto Industry News:

The Republic of El Salvador bought 150 Bitcoins in its worst bear market since BTC hit a record high of almost $ 68,000 in the first week of November.

Salvadoran President Nayib Bukele announced the purchase of 150 BTC as the market price temporarily fell below $ 50,000 last weekend after losing more than 15% of market value.

While the Bukele government was able to buy at $ 48,670 per coin, the Bears temporarily lowered Bitcoin's price to almost $ 42,000 after a drop of more than 37%, from a record high.

Thanks to this purchase, El Salvador's Bitcoin reserve now amounts to 1,270 BTC, which at the time of writing is worth nearly $ 60.3 million. Earlier, the president announced the purchase of 420 BTC on October 28 during a temporary bear market.

The Salvadoran plan includes withdrawing unrealized US dollar BTC gains to finance various development projects while maintaining the overall value of the central reserve.

Technical Market Outlook

The BTC/USD pair has retrace 61% of the last wave down as the bulls hit the level of $51,545. The next technical resistance is located at $53,333. The immediate technical support is seen at $49,720. The momentum is picking up from the oversold conditions, currently hovering around the level of fifty on the RSI (14) indicator. Despite the recent complex and time consuming corrective decline in form of ABCxABCxABC pattern, the larger time frame trend remains up.

Weekly Pivot Points:

WR3 - $75,308

WR2 - $67,229

WR1 - $57,614

Weekly Pivot - $49,717

WS1 - $40,054

WS2 - $31,972

WS3 - $22,000

Trading Outlook:

The ABCxABCxABC complex corrective cycle might be terminated at the level of $41,678 and the market is ready to continue the up trend. According to the long-term charts the bulls are still in control of the Bitcoin market and the next long term target for Bitcoin is seen at the level of $70,000. This scenario is valid as long as the level of $39,474 is clearly broken on the daily time frame chart (daily candle close below $39,000 would be considered as a long-term trend change due to the lower low placement).