FX.co ★ Technical Analysis of BTC/USD for April 29, 2022

Crypto Industry News:

A few months after Bitcoin became legal tender in El Salvador, a study by the National Bureau of Economic Research (NBER) shows that 20% of businesses have started to accept BTC as a payment method.

The survey, involving adults from 1,800 households in El Salvador, aimed to measure BTC intake in that country. Researchers found that compared to other payment methods, BTC is gaining in popularity.

According to the study, users who downloaded the government-backed Chivo Wallet "reduced their cash consumption by 10%, while their net use of debit cards fell by 11%."

Besides, since the Bitcoin regulations in El Salvador require traders to accept BTC, the study also included survey participants who identified themselves as business owners and employees familiar with the company's payment methods.

In this demographic, 20% said their business or workplace accepts BTC, while only 25% accept credit and debit cards. In addition, the study noted that "11.4% of businesses have positive Bitcoin sales".

The researchers also found that 71% of BTC sales are mostly converted into dollars and then paid out. Moreover, 17% of sales are converted into dollars and held in Chivo's wallet. Meanwhile, 12% kept their BTC on the Chivo app.

Technical Market Outlook:

The BTC/USD pair had bronek above the short-term trend line resistnace, however, in order to terminate the down trend, bulls need to break through the last swing high located at $42,952 and head towards the level of $50k. The nearest technical resistance is seen at the level of $40,785 and the immediate technical support is located at $38,554 and $38,885. So far the local high weas made at the level of $40,349, so bulls need to try harder of the want a bigger retracement to occur.

Weekly Pivot Points:

WR3 - $45,929

WR2 - $44,377

WR1 - $41,615

Weekly Pivot - $40,006

WS1 - $37,224

WS2 - $35,762

WS3 - $32,950

Trading Outlook:

The down trend on the H4, Daily and Weekly time frames continues. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. The key long term technical support is seen at the level of $32,899.