Bitcoin [+ 9.5%] managed to rebound from its weekly low of $ 31,188 and was up a whopping 16% on Wednesday.
The market reached the necessary upside with the news that El Salvador has passed legislation to recognize bitcoin as fiat currency . The El Salvador congress approved the law with a majority vote of 62/84 representatives.
The law takes effect in 90 days, and there are already rumors circulating about further attempts at legislation on bitcoin as legal currency in other Central and South American countries.
BTC has long been known for its significant moves on a good or bad news day, so it shouldn’t be a shock that the market has responded so bullish to a historic event like this.
The 24-hour range for BTC recorded more than $ 5,000 spread, $ 32,469- $ 37,622.
The chart above from TradingShot on TradingView shows how close BTC is to a death cross on the daily chart.
A death cross occurs when the 50 MA (moving average) dips below the 200 MA, this basically implies that the longer time scale has ended the uptrend and entered a bearish phase. This indicator is not apodictic but the short-term probability is generally bearish when this event occurs.
Even the Fear and Greed Index still reflects some short-term doubts, despite the announcement from El Salvador. BTC only managed to rebound 1 point, from 13 (Extreme Fear) on Tuesday.
Bitcoin has lost more than 57% of its value in less than a month, but is still + 237% in the past 12 months.
On Wednesday, BTC managed to climb back above $ 37k in the hours leading up to the daily close, but failed to close above $ 37k.
BTC closed the daily candle on Wednesday at $ 36,634 and closed the day at + $ 3,219.
The total capital of the cryptocurrency market is $ 1.68 trillion, and the bitcoin dominance represents 41.5% of the total figure at the time of writing.
There is little to say about the fact that bitcoin does not represent much of the macro sentiment of the cryptocurrency landscape, and altcoins also performed well on Wednesday.
Monero [+ 7.4%] is one of several altcoins that were positively impacted on Wednesday by the macro outlook showing strength. XMR scores + $ 24 for the day at the time of writing.
Monero’s story is interesting and there is no doubt that, like Bitcoin with p2p money and Ethereum’s first mover advantage with smart contracts, Monero also boasts a first mover advantage in private transactions .
There has really been no competition for the Monero throne as the world’s most important privacy coin by market capitalization in asset class history.
The market capitalization of XMR is $ 4.8 billion at the time of writing and the 24-hour volume of XMR is $ 337 million.
Monero recorded a + 296.2% in the last 12 months.
Traders will be keeping an eye on the possibility that XMR manages to climb above a major psychological resistance level of $ 300 in the coming weeks.
From peak to fall, XMR lost 62.03% of its value during the most recent market correction.
The 12-month range of XMR is $ 60.17 – $ 514.78.