Bitcoin ‘Experiment’ in El Salvador Critical for the Cryptocurrency’s Reputation
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Bitcoin (BTC) suffered a debilitating decline on Tuesday as El Salvador made history by becoming the first sovereign state to make BTC a legal tender.
However, the real question in investors’ minds is whether El Salvadorans will embrace BTC. It is worth noting that this is the first time the benchmark cryptocurrency will substantively compete with the dollar, given that Bitcoin and the dollar are both legal tenders in the country.
That said, if citizens shun BTC or adopt it but see no meaningful improvement to their standard of living, it could have a significant impact on the primary cryptocurrency.
The El Salvador experiment also addresses the question of whether BTC can operate as a unit of exchange. While BTC is known as an excellent speculative asset or store of value, it has not gotten tested in its capacity to function as an everyday currency.
As with any investment vehicle, Bitcoin requires new investors to maintain a steady growth curve. This makes the El Salvador development a critical test of performance for the flagship cryptocurrency. BTC has the opportunity to prove itself as an asset that not only creates wealth but also systematically uplift host nations.
Key Bitcoin Levels to Watch — September 9
Despite the massive +$10K crash, BTC has posted a goodish bounce, and technical factors indicate that the bullish bias remains intact. BTC currently trades above the critical 200 SMA line at $46K as the formation of our golden cross pattern continues undisturbed.
The emergence of a golden cross could help BTC return to the $60,000s and higher. We expect this pattern to emerge in the seven days around the $46,500 area.
Meanwhile, our resistance levels are at $48,000, $49,500, and $50,000, and our key support levels are at $46,000, $45,000, and $44,000.
Total Market Capitalization: $2.14 trillion
Bitcoin Market Capitalization: $883.1 billion
Bitcoin Dominance: 41.2%
Market Rank: #1
