FX.co ★ Technical Analysis of BTC/USD for December 4, 2023

Crypto Industry News:

Nayib Bukele steps down as El Salvador's president ahead of the upcoming elections, making way for Claudia Rodriguez De Guevara to assume office from December 1. Notably, Guevara will be the first woman to hold the position of head of state and is set to serve until June 2024. The question arises: does the former president, Nayib Bukele, have a chance for re-election?

The commencement of the presidential campaign in El Salvador signals Bukele's entry into the political race for re-election. Bukele, recognized for championing the bill acknowledging bitcoin (BTC) as legal tender in the country, has played a pivotal role in shaping El Salvador's recent economic policies. Initially assuming office in June 2019, Bukele swiftly garnered attention for successfully tackling the nation's alarming homicide rates, previously ranked as the highest globally.

Bukele is equally renowned for his enthusiastic endorsement of cryptocurrencies, particularly BTC. In September 2021, he advocated for and secured the adoption of bitcoin as legal tender in El Salvador. His initiatives extended to endorsing the construction of a "Bitcoin City" fueled by volcanic energy. However, Bukele's tenure was not without controversy; efforts to combat gangs through mass arrests in 2022 resulted in reported incidents of abuse and deaths in custody, according to a UN report.

Despite the controversies, Nayib Bukele maintains significant popularity among the Salvadoran public, boasting over 90% support, according to The Economist. Citizens applaud him for addressing the critical issue of high murder rates and embracing innovative projects, including a functional volcano-powered BTC mine. Interestingly, the country's Supreme Court's ruling in 2021 paved the way for Bukele's potential re-election, nullifying the previous constitutional requirement of a 10-year waiting period. Bukele's return to office appears imminent, foreshadowing the continued implementation of cryptocurrency initiatives in El Salvador.

Technical Market Outlook:

The BTC/USD pair had made a new swing high at the level of $41,823 (at the time of writing the article) and keeps heading up. The next target for bulls is the level of $48,200 which is the weekly high from 28 March 2022. The key short-term technical support is seen at the level of $39,824 and only a sustained breakout below this level would change the short-term outlook to more bearish.

Weekly Pivot Points:

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.