Bitcoin: is it a buy now?

Hot news about Bitcoin

We got bittersweet news for you. First, US officials managed to recover most of the ransom paid to hackers that targeted Colonial Pipeline, which raised concerns over the security of the cryptocurrency. US officials were able to access the password for one of the hackers’ bitcoin wallets. What?! Is it possible? It turned out that yes, and the BTC has immediately lost one of its main advantages.

Just two months ago the Bitcoin has set an all-time record of almost $65,000. However, a recent sell-off in crypto prices has weakened confidence in it. Or not? Maybe it’s just a good opportunity to buy some bitcoins. Views of investors and analysts differ. Some believe the BTC will retest $20,000 such as Oanda and Evercore. Others are selling other assets to purchase more crypto. For example, MicroStrategy has sold $500 million in junk bonds to buy additional bitcoin.

Second, El Salvador adopted Bitcoin as a legal tender, which helped to recover some losses triggered by the first news. It’s hard to imagine right now, but if this experiment goes well, other countries can implement this practice as well.

Technical outlook

After a long fall, BTC/USD has entered the horizontal corridor between $33,000 and $40,000. It’s likely to move sideways inside this range for some time. When it manages to break above the resistance level of $40,000, it may jump to the 200-period moving average of $42,000 and then to the psychological mark of $45,000. On the flip side, if the BTC drops below the support of $33,000, the way down to January lows of $30,000 will be clear.