Should We Follow El Salvador’s Step to Buy Bitcoin at Bottom?
El Salvador officially became the first country to adopt Bitcoin as its legal tender on September 7th, Axios and Reuters reported.
The day before the bill came into effect,Booker posted on the Twitter that the government of El Salvador has purchased a total of 400 bitcoin worthy about 21 million U.S. dollars. At the same time, the Salvadoran government has also installed 200 Bitcoin ATM and released a Bitcoin wallet called Chivo, which will support the adoption of Bitcoin in the country and went online on App stores in Google, HuaWei and whatnot.Booker said that the government used to distribute “virtual currency red packets” worth $30 to up to 4 million people who registered to use Bitcoin wallets.
Three months ago, the government of El Salvador passed the Bitcoin bill with 62 votes in favor and 19 against. According to this bill, Bitcoin will be regulated as the legal currency of El Salvador and can be used for commodity pricing, payment methods and tax purposes. The bill also stipulates that the state will allow users to adopt alternative Bitcoin transactions and automatically convert Bitcoin into U.S. dollars when necessary.
The president tried his best to sell, but it didn’t mean that someone would pay the bill. A poll conducted by the University of Central America (UCA) showed that among the 1281 people surveyed, at least 67.9% said that they did not agree or strongly opposed the use of Bitcoin as legal tender, and more than 32% People say they agree to some extent.
In addition, 90% of people do not have a clear understanding of Bitcoin, and 80% of people say they have little or no confidence in the use of Bitcoin. Bitcoin slumped in price below $44,000 on Tuesday, a nosedive over 10% while ETH plunged some 20%. Despite the nosedive, Bukele announced on social media that the government seize this opportunity to purchase 150 Bitcoin again.
Bitcoin slumped in price below $44,000 on Tuesday, a nosedive over 10% while ETH plunged some 20%. Despite the nosedive, Bukele announced on social media that the government seize this opportunity to purchase 150 Bitcoin again
We pointed out in the last article that the Non-Farm Payrolls in August would have little hope to be a surprise. The disappointing result verifies our prediction and also contributes to a short-term gold gain. Gold price has broken blow the previous hourly box.It is presenting a downward trend from the daily chart. As for short term operation, it is suggested to sell limit, stop loss when gold breaks through the upper box and stop limit respectively at 1740 and along the lower edge of price box.
Current IODEX tendency is in conformity with our predication that it will rebound when plunging to near 750. We advised in advance that investors can buy limit and sell limit within 750–830. Now it breaks below 751 with certain distance away from lower 680.Therefore, it is suggested to sell short in short-term operation and stop limit around 680. Investors can hold a wait-and-see attitude after stopping limit for the time being.
The nosedive of bitcoin on Tuesday is indeed all of a sudden as the technical indicator shows no sigh of such plunge. A four-hour K line bottoms 50504 and close at a higher 50929, which indicates a rallying sign if as usual. However, it turns out to be a sharp slump.Though current price recovers slightly, the market will see no straight rise but a second continuous drop after volatility in light of previous plunge. It is safer to bottom finish at that time. Therefore it is advised to sell limit when the price rallies to 48,500, stop loss near 41,000 and stop limit at 50,000. Or, investors can buy ling after the second continuous plunge.
Current ETH has certain support in the chart. Its tendency may be better when compared with BTC. However, if BTC suffers from continuous slump, ETH is bound to follow the trend to drop as well. Therefore directly long buying at current time has certain risks. Radical investors can try to buy ETH with rather small position, stop loss when the price breaks below the support line and stop limit around 3,700 while prudent investors is advised to participate in after this round of tendency ends.
Disclaimer: The above is merely a personal talk which shall not be deemed as investment reference.Investment is accompanied by risks and the author will not be responsible for any investment options or relevant outcomes.
Captain wowo,guest commentator of Fish.Pro,has 4-year rich experience in investment practice of both stock and crypto market.Focusing on spot transaction,Captain wowo is proficient at analyzing macro policies and market interpretation and has his own stable trade modes with profound understanding of long-term trades and short-term taste.