Bitcoin Consolidates Under $48K: What Could Drive a Sharp Downtrend? – FX Leaders
Traders of the US dollar have a busy week ahead of them. The highlights on this week’s calendar include the ISM data, the minutes of the Federal Open Market Committee meeting and the nonfarm payrolls at the end of the week. Furthermore, US President Joe Biden’s nominations for three Federal Reserve governor positions may also garner some attention.
According to reports, the president of El Salvador has provided six Bitcoin estimates for 2022. He anticipates that two more countries will recognize Bitcoin as a legitimate currency this year. Meanwhile, he expects El Salvador’s Bitcoin City to be built this year, and that the country’s volcano bonds will be oversubscribed. President Bukele also anticipates that BTC will reach $100,000 in value. El Salvador has purchased around 1,391 BTC since Bitcoin became an official currency of the country. However, these bullish projections for Bitcoin futures have had little impact on the BTC/USD thus far.
President Bukele of El Salvador believes that Bitcoin will be legalized in two more nations this year. As mentioned above, he expects El Salvador’s Bitcoin City to be built this year and projects oversubscription of the country’s volcano bonds. The price of Bitcoin may continue to decrease if it fails to recover over $48,000.
There is strong support at or near the $46,400 mark, with the first big support close to $46,100. If the price goes below $46,100, it may drop as low as $45,500. Additional losses could result in a deeper decline, to below the $45,000 support line. In this case, the price may fall to $43,200. Furthermore, the broad-based strength of the US dollar was considered one of the primary factors holding the BTC/USD coin down. BTC/USD is now trading at 47,121.0, with a 52-week high of 46,740.9 and a low of 46,740.9.