Earlier in February, PayPal announced that it will allow its U.K. customers to buy, sell and hold cryptocurrencies (Bitcoin, Bitcoin Cash, Ethereum, and Litecoin) via its app. The San Jose-based financial giant first got its feet wet in the crypto ocean by allowing U.S. clients to use digital currencies back in October 2020 and gradually increased functionality since then.
In late August this year, the company started to implement support in the U.K. for the 4 cryptocurrencies mentioned above and now the rollout is in full swing. PayPal’s general manager of blockchain, crypto, and digital currencies, Jose Fernandez da Ponte said: “We are committed to continue working closely with regulators in the UK, and around the world, to offer our support – and meaningfully contribute to shaping the role digital currencies will play in the future of global finance and commerce.”
El Salvador Bitcoin Adoption Still Thorny
Although the general trend is bullish for crypto adoption, some of El Salvador’s citizens are still not on board with Bitcoin being legal tender in the country. The initial rollout was met with a few technical glitches but also protests against the decision to accept Bitcoin alongside the US Dollar as an official currency of the country.
It seems as these protesters are not changing their minds, as recently a group set fire to a Bitcoin ATM as part of a demonstration against President Bukele’s pro-Bitcoin policy. As reported by news outlet Teleprensa, a group of people set fire to a crypto kiosk and nearby furniture in Plaza Gerardo Barrios of El Salvador’s capital city San Salvador. According to Mario Durán, San Salvador’s Mayor, a few city workers had to be evacuated from the area due to threats made by protesters.
Technical Outlook – BTC/USD
After the initial flash-crash triggered by the Bitcoin rollout in El Salvador, the market recovered some of the losses and stabilized above the key support at $45,000, currently trading at $47,780.
Price came back above the 50 days Moving Average and several candles are showing long wicks that pierced through the support at $45,000; however, all Daily candle closes are above the said support, which is a sign of rejection. Also, comparing the last lows made by price and the RSI, we can see that the chart is showing bullish divergence: price is making higher lows but the indicator is making lower lows.
More often than not, this is a sign that bullish action will soon pick up, and combined with the rejection seen at $45K, it suggests that $50,000 is the pair’s next destination, followed by a possible break. This bullish scenario would be invalidated by a Daily candle close below $45K.