Bitcoin Recovers above Recent Support but Stuck Below $39.4K– April 27, 2022
Bitcoin has fallen to crucial support above the $37,000 price level but it is stuck below $39.4K. Incidentally, the bulls have been defending the support vigorously since February. For instance, on February 24, the bears broke below the $37,000 support to reach the low of $34,425 but the bulls bought the dips. Bitcoin recovered and rallied to the $48,000 high. Today, BTC/USD is trading at $39,095 at the time of writing.
Resistance Levels: $70,000, $75,000, $80,000
Support Levels: $50,000, $45,000, $40,000
Bitcoin has recovered above the $37,000 support as the crypto resumes upward. The upward move is facing an initial resistance at the high of $39,496. In the meantime, Bitcoin is fluctuating between $38,475 and $49,476 price levels. The largest cryptocurrency will be above the $40,000 psychological price level if buyers overcome the initial resistance.
On March 13, Bitcoin has a similar price action as BTC price made a series of higher highs and higher lows. This propels Bitcoin to reach the high of $48,000. BTC price is below the 20% range of the daily stochastic. It implies that the selling pressure has reached the oversold region of the market. A further downward movement of the cryptocurrency is unlikely. We expect buyers to emerge in the oversold region to push prices upward.
Central African Republic (CAR) Will Adopt Bitcoin As a Legal Tender
Faustin-Archange Touadéra is the President of the Central African Republic. He has signed a bill into law establishing a regulatory framework for the use of cryptocurrency in the country. Because of this, the country will adopt Bitcoin in addition to the country’s franc as legal tender. Obed Namsio, the president’s chief of staff, said the move was aimed at making the CAR one of the “boldest and most visionary” in the world.
According to a report, there are about five million residents of the Central African Republic. The country’s gross domestic product is roughly $2.4 billion and it is classified as a “repressed” economy according to the Heritage Foundation’s 2022 Index of Economic Freedom. For now, it is unclear what effect it will have on the citizens after adopting Bitcoin as a legal tender.
Meanwhile, Bitcoin is holding above the $37,727 support as it resumed upward. The uptrend is stuck below $39,400 high. In the meantime, it is fluctuating between $38,475 and $49,476 price levels. In the coming days, the BTC price will break through the range-bound levels.
Looking to buy or trade Bitcoin (BTC) now? Invest at eToro!
75% of retail investor accounts lose money when trading CFDs with this provider