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A $9,800 Bitcoin is Possible After Overnight Upside Rejection: Analyst

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Bitcoin bulls should brace for the cryptocurrency to hit the $9,800 valuation, according to an analyst.

The pseudonymous entity envisioned the downside scenario after BTC/USD failed to maintain support above $11,200 on Sunday. A high selling pressure around the said level ensued an overnight bearish correction. As a result, the pair fell to as low as $10,750 at one point in time.

“SuperTrend is now flipping bearish and looks to be ready to correct as predicted,” the analyst noted, adding that he has closed most of his spot Bitcoin positions with expectations to open them later at lower levels.

BTC/USD bearish scenario pitched by IncomeSharks. Source: TradingView.com

The statement came amid Bitcoin’s overstretched consolidation moves inside the $10,800-$11,200 area. Any attempts to extend bullish momentum above $11,200 met with rejection. Simultaneously, the $10,800-level held a falling BTC/USD from flourishing its bearish bias.

The rangebound price move allowed the analyst to eye a retest of $10,800 all over again. Nevertheless, this time, he anticipated a broader bearish move towards the supports-at-front near $10,200, $10,000, $9,800, and even levels below it.

Why Bearish?

The analyst did not give an immediate reason behind his bearish predictions. But based on his previous tweets, it appears that he is ready to roll over to the bullish side should Bitcoin break above $11,250. Excerpt from one of his predictions published during the weekend session:

“Either we drop now (next few days), or we pump to diagonal resistance/supertrend resistance, then go down. The only way I would change to a more bullish bias is if we closed bullish above $11,250.”

BTC/USD dropped towards $10,750 a day after the analyst’s call.

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A fall towards $10,000 appears likely for Bitcoin, as per IncomeSharks. Source: TradingView.com

Now trading near $10,950, BTC/USD still has the potential to test $11,250 in the coming session. That is, at least, possible due to supportive macroeconomic fundamentals, such as the recent weakness in the US dollar index. Bitcoin has shown an inverse correlation with the greenback since March 2020’s global market rout.

Moreover, traders are also waiting for Federal Reserve Chairman Jerome Powell and US Treasury Secretary Steven Mnuchin to appear before the Senate Banking Committee later this week. The two might shed more light on the next stimulus package that stands stuck in the US Congress over the size of the aid.

Closing Thoughts on Bitcoin

If Mr. Mnuchin commits that the stimulus deal will reach a conclusion, then it might leave the US dollar under additional stress. That would leave Bitcoin more bullish in the short-term.

That said, BTC/USD could test the upper trendline of the Triangle pattern, as shown in the chart above, for an extended breakout move. Nevertheless, a fundamental misfire, such as no clarity from Mr. Mnuchin on the stimulus deal, could lead the pair to play the downside scenario towards $10,000 – and below.





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Bitcoin

El Salvador to airdrop $30 in Bitcoin to every adult citizen

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The president of El Salvador  has announced the government will airdrop $30 worth of Bitcon (BTC) to every adult citizen of the country.

The announcement was welcomed by Bitcoiners, with influencers speculating El Salvador’s government wil need to purchase the required BTC it intends to distribute adding more than $100 million in buying pressure on markets.

Quickly googled estimates of the adult population of El Salvador varied, with onchain analyst Willy Woo tweeting that Bitcoin’s global user base will grow by 2.5% thanks to the influx of 4.5 million Salvadorians.

Others placed the Salvadoran adult population as high as 6.5 million (which is actually the total population), with Yahoo Finance anchor Zack Guzman using the figure for some rough back of the envelope calculations suggesting that $195 million worth of Bitcoin will be airdropped across the country.

Exact figures are hard to find but Statista shows that in 2019 the population aged 15 and above was 4.72M.

However, crypto Twitter’s euphoria may be be slightly premature, as local publication Prensa Latina notes El Salvador’s citizens will only receive the free Bitcoin after downloading the government-issued cryptocurrency wallet application.

The news was announced during a June 25 press conference, with President Bukele stating the government’s “wallet app will even work anywhere with a cell connection, and you won’t have to have a cell plan for the app.”

President Bukele also stated that the country’s much-celebrated Bitcoin law recognizing BTC as legal currency nationwide will come into effect on September 7.

Related: Opposition poses constitutional challenge to El Salvador’s Bitcoin law

El Salvador’s Bitcoin law was passed roughly two weeks ago. While the move has been praised by the global crypto community, the legislation has faced opposition from a minority political party and the World Bank.