Last tuesday, September 7 the new Bitcoin law came into force in El Salvador, recognizing Bitcoin as a legal tender after president Nayib Bukele announced that El Salvador’s Bitcoin reserves counted now with 500 BTC after making an initial purchase of 400 BTC, followed by a second buy of 150 BTC after the price fell significantly. This shows how big is El Salvador betting for the implementation of crypto currency to their financial system, especially on the cryptocurrency with the biggest market capitalization. Many different internet communities named that specific date as Bitcoin Day, and many retailers were encouraging huge masses of internet users to buy Bitcoin in order to raise its price as a celebration of this event. Nevertheless, what retailers expected the less happened next: Bitcoin and almost every alternative coin fell more than 10% in a few hours.

The most coherent reason why Bitcoin had fallen that much could be that many traders took profits above $50,000 and liquidated their positions, but other people are starting to believe that this was generated due to a plot by the International Monetary Fund because of their disagreement with financial decentralization. So let me ask you, which one do you believe in? In other news, Blockchain Summit Latam 2021 event took place last week, in which many different interesting topics were discussed, such as crypto mining situation in Latin America, cryptocurrency regulations, challenges and risks related to the incorporation of crypto assets into the financial systems of different countries. Also, there was a huge  interest into Ethereum and its new layers, which will allow users to execute scaled smart contracts without affecting the security standards that Ethereum offers. Bitcoin is currently above $44,000, after starting a bearish week falling around 4.12%. Nevertheless, many different analysts are alerting that this is just a bear trap and that the bullish market will keep moving on. We can see a support level close to the $42,300, and we can also observe that the price has bounced on its 100 period exponential moving average. If the price makes it down to break this indicator, we could be expecting a longer bearish move looking forward to fall down close to $40,000. On the other hand, while almost every cryptocurrency had a bearish week, Solana made it up to a maximum value of $216, growing more than 50% in the past few days. Anyways, as it was expected, a strong correction is now being made and its price is now around $158, so Fibonacci levels could be very useful to find a new buy price. Many strong movements are coming in the next few days in crypto markets, so let’s be aware of how the implementation of Bitcoin as a legal tender in El Salvador works, how people adapt and how many other countries react, and also we will have to see if any international organization interferes. Remember that after strong market corrections, markets recover quite well! Without further ado, we wish you an amazing week.