BTC price doesn’t care about El Salvador? 5 things to watch in Bitcoin this week

The price of Bitcoin has been on a roller coaster ride this past week, having risen from a low of $4,400 in the early hours of the morning to a high of $4,800 over the course of the day, and then falling back to $4,600 overnight. It is currently trading at $4,700.

While GDP growth is an important metric, it doesn’t always tell the whole story. GDP growth is important for the health of a nation, but you have to look at more than just the number. For example, El Salvador’s GDP has grown at a yearly rate of 3.5% for the past 13 years. Yet, it has the highest rate of poverty in Latin America and a shocking rate of poverty inequality. This is why I keep a close eye on the following five charts and watch to see how they evolve in the coming days.

What a week. The price of Bitcoin dropped to $6,500 in the early morning hours of Wednesday, September 13. It’s a price that has been hovering around the $6,000 mark for the past few weeks, but even dropping to that level felt like a huge win. The last time the price fell this low was in June.

Bitcoin (BTC) is entering a new week below $40,000, but with two new major milestones under its belt. After falling due to ongoing fears about China over the weekend, bitcoin adoption was also unexpected – in El Salvador and Paraguay. With the world possibly hosting the first two Bitcoin nations in history, there is plenty of reason for optimism, but can the BTC price catch up? Cointelegraph looks at five things that could change the status quo on BTC/USD in the coming days.

Yellen says rate hike is a good thing

A quick look at the overall macroeconomic environment provides an interesting mix for bitcoin traders and traders. Inflation remains a major talking point in the US, with Treasury Secretary Janet Yellen having said she would call for a rate hike. Speaking to Bloomberg over the weekend, Yellen supported President Joe Biden’s recent massive spending program and said it should be trusted even if it leads to inflation. If we end up with slightly higher interest rates, that would be a benefit from the public’s and the Fed’s perspective, she told the publication. Rising interest rates tend to make bitcoin more attractive as a deflationary asset, but the rapid rise in the US dollar this month goes hand in hand with that – something that traditionally puts pressure on BTC/USD. After jumping from the 90 level, the U.S. Dollar Money Index (DXY) is now trying to catch up with the downtrend that began in mid-March. One-day candlestick chart of the U.S. dollar currency index (DXY). Source: TradingView

El Salvador and Paraguay did not hand over bitcoin certificates

Bitcoin has the word Salvador on everyone’s lips. With the Strike payment portal making serious inroads in the country, President Nayib Bukele has officially announced that he will send a bill to parliament to recognize bitcoin as legal tender. If successful, El Salvador will be the first country on earth to adopt something similar to the Bitcoin standard. Bukele confirmed his plans during a video speech at the Bitcoin Conference 2021 in Miami last week, where Strike CEO Jack Mullers spoke about the plans. However, markets were hardly shocked by the revelation, which came through when a member of Paraguay’s congress took to social media to hint at plans to integrate bitcoin into the world’s second-largest economy. As I have been saying for a long time, our country needs to develop hand in hand with the new generation. This is the moment, our moment, Carlitos Rehala tweeted Monday. This week we are launching a major innovation project for Paraguay in front of the world! The real one, the one on the moon. Rehala also thanked Bukele for being a role model. But as Cointelegraph reports, there is a price to pay for El Salvador’s acceptance of Bitcoin. In response, commentators have pointed to Bukele’s authoritarian leadership and the potential problems that arise in an economy that uses the US dollar. Caitlin Long, founder and CEO of Avanti Bank, believes there are more serious forces at work. Bitcoin goes against dictatorships, as does great technology, she wrote in one of her many tweets about the movement. Bitcoin doesn’t care if the president of El Salvador wants to make BTC legal tender – it doesn’t matter.

Lock in a classic bearish signal

In light of the immediate price action, those who had reservations about bitcoin on Monday can be forgiven. Despite all the excitement surrounding the conference, BTC/USD is holding in the range and has no shortage of higher highs and higher lows, which could signal a breakout. Recent attempts to do so – to break out of a compression wedge where volatility tends toward zero – have all failed. At the time of writing, bitcoin was trading at just over $36,000. With the decline in financing rates, there are positive signs in some market sectors, but others are already sounding the alarm. Short trading on Bitfinex, the largest exchange, is a concern. As popular Twitter account Fomocap noted on Monday, the increase in shorts has historically coincided with high volatility – mostly downward. Bitfinex’s sudden move into shorts always means something. From November 25 to November 19. May increase, he warned. It’s up again.Bitfinex annotated short chart against BTC/USD. Source: Fomocap/Twitter BTC price doesn’t care about El Salvador? 5 things to watch in Bitcoin this week This will reinforce existing concerns that bitcoin has not yet completed its bearish pullback. According to Cointelegraph, opinions are divided – some expect a return to $20,000, while others are convinced that such levels are forever out of reach.

Ethereum tends to parabolism against BTC

Bitcoin’s pain could be a boon for altcoins. With some cryptocurrencies showing steady growth despite a decline in the market capitalization of cryptocurrencies, there remains hope that the alts season for opportunists may yet begin. Ether (ETH) is of particular interest this week as it is close to last month’s local high of 0.081 against bitcoin. ETH/BTC is currently at 0.076 and could be ready for another breakout. Kyle Davis, CEO of Three Arrows Capital, even called the coming move parabolic. If we hit 0.2 without both assets hitting USD highs, I’m not going to care about cryptocurrencies anymore, replied UpOnly chat host Coby on Blockfolio, reflecting the general feeling of frustration among traders about the current price dynamics. ETH/BTC hit its all-time high of 0.123 in early 2018 and has not been able to get close to that level since. ETH/BTC (Bitstamp) 1-week candlestick chart. Source: TradingView BTC price doesn’t care about El Salvador? 5 things to watch in Bitcoin this week On Monday, most of the top 50 cryptocurrencies by market capitalization posted modest gains amid bitcoin’s fluctuations, while some outperformed, including Solana (SOL) with a 10% return and Tezos (XTZ) with a 12% return. We could see some upside here, especially if Eth/BTC holds up, trader Josh Rager predicted on Sunday on the SOL outlook.

Miners deliver the highest output by 2021

Bitcoin’s hash rate is showing signs of recovery, with a slight increase from 125 hashes per second (EH/s) to 134 EH/s in recent days. Complexity is expected to decrease by another 8% or so when the next automatic adjustment occurs in five days, offsetting the shock to mining companies that has accompanied recent volatility. Nonetheless, last week’s data shows that once confident miners, who had prepared for the fall, have massively reduced their inventories. As noted by analyst William Clemente, miner balances are down by 5,000 BTC from last week, a significant reversal. The 3rd. In June, 3,012 BTC left Poolin’s largest mining pool, the largest outflow in 2021. One day later, another 2,501 BTC were transferred. However, analyst Lex Moszkowski admitted that the funds may not have been sold. That’s no reason to sell even if there’s a 3x decline that day, he tweeted. BTC Miner Balance Chart. Source: William Clemente/Twitter BTC price doesn’t care about El Salvador? 5 things to watch in Bitcoin this weekAfter a long year of dominance by BTC, prices have finally moved back to a more balanced market, with other coins gaining in value. But, at the same time, it looks like BTC may be losing some of its market share, with El Salvador celebrating the launch of its first Bitcoin ATM. Even though El Salvador is the smallest country in the world, it may be making a significant mark on the cryptocurrency market.. Read more about what did bitcoin start at and let us know what you think.

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