Bitcoin Saves The World

August 13, 2022

Bitcoin – The New Darling of Governments?

Soon subsequently Elevated railway Salvador announced that Bitcoin will become legal tender in the country, there were rumors that Paraguay is look to make out the unvarying. Since then, the long-awaited Bitcoin bill was presented in Paraguay's Subject Copulation but instead of aiming to make BTC sound soft, it simply laid out the framework for regulating cryptocurrencies.

However, more recently, Argentina's President Alberto Fernandez declared that he is volition to take into consideration the adoption of Bitcoin. In an interview, the President was asked about his views happening making Bitcoin legal tender and he had this to enjoin: "I don't privation to go too far out along a limb […] but there is none reason to say 'no'". He then continued by adding "Possibly that is a good way to take." and "They say the advantage is that the inflationary event is largely nullified".

According to Bloomberg's World Misery Index, Argentina is the second-most "miserable" economy, with scarey inflation. To paint a clearer picture: $100 at the beginning of President Mauricio Macri's mandate would translate into $661 now (President Fernandez succeeded President Macri).

Introducing Bitcoin as legal tender would indeed nullify a big part of the inflation, thus qualification it very appealing but thither's a long road ahead and there are no certainties, considering that politics are unearthly, to say the least. Either way, Bitcoin is being talked around more and more, investors are being careworn to it, and gravid banks are jumping along the bandwagon and all this is reflected along the charts, at least thus far.

Technical Outlook – BTC/USD

At the time of committal to writing, Bitcoin is changing hands at $46,250, with a 13.50% increase over the last 7 days. The pair is comfortably trading preceding the 50 days Moving Average and is healthy off the $45K level after a brief pullback that confirmed the level as substantiate.

The inalterable time we talked around Bitcoin, it was attempting to break the long-term bearish trend short letter seen happening the graph and since that feat was achieved, more bulls joined the fun, making information technology appear corresponding $50K is the next stop.

Withal, there is a warning ratify on the chart, which shouldn't be overlooked: bearish divergence. The Relative Strong suit Index touched the overbought level twice in the recent period and the irregular peak is slightly lower. If we look at the corresponding price peaks, we posterior date that the opposite happened: the 2d price elevation is high. When price is making a high high and the oscillator is devising a lower high, we are dealing with bearish divergence, which often translates into swerve reversal OR approximately material body of pullback.

That beingness aforementioned, we may see a dip below the support at $45,000 merely the main bias remains bullish from a technical perspective merely A we know, a tweet or a rumor can promptly change the picture.