Pressure on Bitcoin remained bearish over the weekend as the cryptocurrency briefly bounced below the key $ 35,000 threshold again on Saturday night, and close to $ 37,800 on Saturday morning amid some dismal data.
Indeed, we learned that the Chinese social network Weibo is now blocking access to several popular cryptocurrency-related accounts, likely as part of a decision taken by the Chinese government.
Towards a tougher anti-crypto policy in China?
Given the recent reiteration of China’s warnings about trading and mining cryptocurrencies, this raises concerns that the authorities will impose stricter restrictions that have already been in place since 2017.
For now, law enforcement agencies at this level in China are lenient enough to allow loopholes to access cryptocurrency. But the Chinese government also has enough power to put more sticks in the wheels of the cryptocurrency industry, and blocking social accounts associated with this market is a clear indication in that direction.
Institutions are no longer interested in bitcoin
Another negative bitcoin news comes from Goldman Sachs’ note on Saturday, which says institutional investors are no longer interested in Bitcoin.
A well-known investment bank wrote: “Earlier this week, we hosted two CIO roundtables with 25 CIOs from various long-term funds and hedge funds,” adding that “their favorite style is the growth style. but less favored for bitcoin. “
This is in addition to other recent statements of the same type, which suggest that Bitcoin was only a temporary fad or even a temporary obstacle in the context of the pandemic for institutions. And while they are less influential than other markets, the institutional disinterest in Bitcoin will be mechanically bearish for the cryptocurrency.
El Salvador wants to make Bitcoin the official currency
As for Bitcoin, while it doesn’t seem to have affected him too much, Salvador’s President Nayib Bukele said he plans to make Bitcoin legal tender in the country and that he is going to put forward a formal proposal in that direction.
“Next week, I will submit a bill to Congress that will make bitcoin legal tender,” he said, adding that “this will ensure financial inclusion for thousands of people outside the“ legal economy ”.
Although El Salvador is a small country, the transformation of Bitcoin into the official currency will further increase the confidence in the cryptocurrency. More importantly, this will create a life-size experiment that will allow us to see if large-scale use of bitcoin is viable or not.
Technical Analysis BTC / USD
From a graphical point of view, it should be noted that the movements in BTC / USD over the weekend did not affect the main trend. Bitcoin is indeed still in short-term consolidation after a sharp correction that occurred May 10-23, from a peak of $ 59,500 to a low close to $ 30,000.
To confirm an exit from the top of this consolidation, and therefore for Bitcoin to begin reversing its negative background profile, it is necessary to cross the main resistance zone.
As you can see in the chart above, it consists of a psychological threshold of $ 40,000 and a 200-day moving average, which is currently $ 41,850. If this zone is crossed, another key threshold to which the market’s attention will be drawn will be the $ 50,000 headline psychological threshold. But as long as bitcoin stays below $ 40- $ 41,850, sellers can be considered to be in control of BTC.
In this context, the bears may be interested in the $ 30,000 threshold.