The Bitcoin price is recovering from Saturday’s weakness. Bolstered by the announcement that Mexico’s Banco Azteca may start to use BTC.
Bitcoin is last trading at $345,361, up $1,620 (+4.90%).
It was business as usual for Bitcoin Saturday. On Friday, BTC was trading above $35,600. However, the following morning it was 10% lower and below $32,000.
However, the Bitcoin price is having a positive reaction to the banking magnates latest endorsement.
Ricardo Salinas, head of the Banco Azteca banking business, is Mexico’s third-richest man, with a family fortune close to $16 billion. Furthermore, he is a long-standing supporter of cryptocurrencies and last year revealed he holds 10% of his liquid investment portfolio in BTC.
“Sure, I recommend the use of #Bitcoin, and me and my bank are working to be the first bank in Mexico to accept #Bitcoin,”
The daily chart perfectly illustrates the frustrating price action of Bitcoin over the last month. All attempts to recover above $40,00 have been swiftly rejected.
Furthermore, this has led to a breakdown in technicals, and the 50-day moving average has crossed below its 100 and 200-day counterparts.
However, the Bitcoin price is finding support at $30,000. The volume data shows increased activity on each visit towards the psychological support barrier. This could point to accumulation. Moreover, the $28,850 low from May 19th is almost perfectly aligned with last weeks, $28,695 bottom. This could be considered as double-bottom, which may be an encouraging sign for the bulls.
For now, BTC is at a middle of the road price, with strong support levels below and significant resistance above.
Ahead of the recent $41,450 high, the 50 DMA at $38,665 will be Bitcoin’s first test. Furthermore, above $41,450, BTC will be faced with the 200 DMA at $43,644. I would consider this to be of paramount importance. Therefore, a close above this level would indicate BTC has weathered the recent storm and is on track to a sustained recovery.
Equally important is the $28850 support. If BTC loses this safety net, it opens the door to $24,000.
Presently, there are valid arguments for both bullish and bearish eventualities. Therefore, until the Bitcoin price breaks free from this wide trading band, it’s likely to frustrate both the bulls and the bears.
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