Chart of the Day
BTC’s near-20% retracement on Wednesday found its support near $42,000, a level previously tested in July. The long wick has penetrated both 50-day and 200-day moving averages. On the 4-hour chart, the intra-day low has also pierced the upper bound of the $28k-$43k range, which has been repeatedly tested for more than three months. Despite low trading volume, the rebound has successfully climbed above the 50-day moving average (MA) but struggled to reclaim the 200-day MA — a meaningful support level that could possibly give the first inkling of the next trading direction. Taking a step back may help us gain some perspective as well — the monthly BTC chart has barely turned red, as September opened near $47,000. The king of crypto may very well still be on an uptrend, so let’s not get too agitated by immediate losses and watch closely how the market unfolds in the next couple of days or even weeks.
Talk of the Town
El Salvador has made history by becoming the first nation to adopt Bitcoin as legal tender, adding to the notion that the largest cryptocurrency tends to find fertile ground in developing countries in terms of mass adoption and immense entrepreneurial opportunities. According to Chainalysis’ Adoption Index, Vietnam ranks first for crypto adoption worldwide and several other emerging economies, such as Ukraine, are among the top 20. Following the footsteps of El Salvador, Cuba, and Panama, Ukraine has joined the list of countries that have folded Bitcoin into national law. The Ukrainian Parliament has voted to legalize cryptocurrency and allow crypto exchanges to operate in the country, as a first step to launch a digital assets market.