Bitcoin Overextended Retracement Continues

The Bitcoin market appears to be returning to the support levels, as prices have recently taken a downturn.  The significant increase in Bitcoin that began in 2020 is no longer visible, but it is an indication of a developing market. Trends with regular retracement have become more common as the volatility has decreased and the market has stabilized. Bitcoin is presently the greatest example of a relatively stable cryptocurrency, with prices that remain consistent in upward and downward forces regardless of any circumstances.

Prices have stabilized following the sharp decrease in the crypto market during the first week of this month.  As virtually all cryptos are moving in the upward direction on the larger timeframe, the recent consolidation has been skewed in favor of the sellers. That being said, of the current price trend, Bitcoin is outperforming some of the most attractive altcoins, as it is facing the least percentage drawdown.

Buyers have now moved up and smashed past the nearest barrier at $48,000 after capturing key support between the price ranges of $43,400 and $44,700. However, the buyers’ surge was modest, as the market eventually hit another resistance level at $48,350. The market has been on a mini-consolidation since this peak. As of writing, the prices are witnessing a plunge, bringing the BTC market down to $45,000. With the open of the Australian markets, the entire crypto market began to fall momentarily after taking resistance from the recent highs.

Buying Interest Grows Despite Price Downturns

The bullish popularity of BTC token continues to grow, despite the market’s lackluster pace. According to worldwide internet searches, the keyword “Buy Bitcoin” received over 203,000 online searches on average per month. Intriguingly, this score is three times higher than the term “Buy Gold.” Popularity is one assumption based on these numbers, but the interest of the public in Bitcoin over Gold is another. As the majority is seeking to protect their assets against inflation during the pandemic, it is clear that the mainstream investors are inclined towards BItcoin as a store of value.

The President of El Salvador Optimistic Over BTC Adoption

El Salvador’s adoption of Bitcoin as legal money has been a significant step forward for the crypto society. Both El Salvador and  BTC crypto have also been receiving a lot of positive press since its formal acceptance.

El Salvador’s president recently turned to his Twitter handle to express his delight over the digital asset’s growing popularity. Approximately 1.1M residents are expected to use the world’s largest cryptocurrency as legal cash in their country, according to the president’s tweet. In the case of the Chivo Bitcoin wallet, it was discovered that over a million users had joined in just 10 days, accounting for 17% of the nation’s people. Interestingly, despite the difficulties, the customer base continues to grow.

El Salvador also now has the third-largest network of bitcoin ATMs behind the United States and Canada. The country has surpassed the United Kingdom to grab third place, thanks to the deployment of 205 crypto ATMs to ease local Bitcoin transactions and conversions.

Bitcoin Technical Analysis: A Game of Patience

The Bitcoin crypto market and even the rest of the coins are currently getting hammered by the sellers, with the prices having a hard time finding any support. The consolidation in prices did come in pretty solid with respect to the buyers as they strongly attempted to breach above the recent resistance levels. But considering the current price action, it is certain that the consolidation was simply an accumulation for the sellers to ride south.

Having all this said, the overall trend (bullish) remains unaffected. Despite a couple of major drawdowns, the major higher timeframe support levels are either holding firm or untouched. Here is an elaborated analysis to the higher timeframe –

The market transited into an uptrend in the third week of July. From lows of $30,000, the buyers pushed the prices all the way up to $42,500. The resistance at this price barely reacted off strongly, which let the buyers take over the market yet again. But on the subsequent move from the bulls, the momentum lacked. Although the market hit as high as $52,000, it took over a month for the buyers to get here.

The flash plummet brought a dip in prices to the $42,500 support region. And an instant reaction from the buyers clearly indicated that the uptrend is real, with a higher low being formed.

But Sellers Had Other Plans…

Despite the recovery came in quite aggressive, the sellers took over the market and shot the prices back to the same higher timeframe support level.

Interestingly, the current move from the bears still does not put the ball on their court as the higher low for the uptrend is intact on the bigger picture. Thus, the current downtrend can simply be an overextended pullback of an uptrend.

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