After a bullish weekend, Bitcoin dropped as low as 17% today in light of the news from El Salvador. Meanwhile, Dollar bulls look to push price back to 92.750.
El Salvador has just become the first country to be the legal tender of Bitcoin. Most analysts believe such news would lead to a surge in the price of Bitcoin if anything, but quite the opposite occurred. Price went from $50,900 to $42,900 during the start of the New York session. More time and price action will be needed before trades could be entered for Bitcoin.
The Dollar had a strong bullish response after bears took the price back down to the psychological level at 92.000. Today’s daily candle will most likely close as a bullish hammer, which indicates an imminent push higher. The next target for price is a key zone spanning from 92.750 and 92.850.
Today’s reactions in the crypto market have made it fairly hard for traders to dictate a direction or possible trade idea. Many analysts believe today’s theatrics were just a stop-run before an inevitable bull run begins. It may be best for traders to sit on their hands and wait for information on the charts before diving back in.
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- Read our previous blog article: Bitcoin Turns Bullish as Summer Ends + Dollar Turns Bearish Before NFP