Bitcoin (BTC) Price Prediction – June 12, 2021
About 48 hours ago, Bitcoin bulls failed to sustain above the $38,000 high as Bitcoin revisits $30,000 low. The breaking of the $39,000 resistance is necessary for Bitcoin to rally above $40,000. Once buyers reclaim the $40,000 support, the bullish momentum will extend to $46,000 high.BTC/USD price lacks buyers at higher price levels as the crypto find it difficult to resume upside momentum.
Resistance Levels: $45,000, $46,000, $47,000
Support Levels: $35,000, $34,000, $33,000
Following the bulls’ failure to break the $38,000 resistance, the BTC price was fluctuating below the resistance level for three days. Thereafter, Bitcoin slumped above the $35,000 support. On the upside, if the bulls break the $38,000 and $39,000 resistance, BTC’s price will rally above $40,000 high. Incidentally, if the $40,000 resistance is cleared, a rally to the previous highs is possible. Since May 19, Bitcoin bulls have been defending the $35,000 support as the king coin remained stable above the critical support at $34,000. However, if the bears break below the critical support, Bitcoin will fall to the $30,000 support level.
El Salvador’s Bitcoin Adoption May Risk IMF Negotiations: JP Morgan – As Bitcoin Revisits $30,000 Low
El Salvador has adopted Bitcoin (BTC) as a legal currency within the country. JP Morgan has indicated that El Salvador’s decision to adopt Bitcoin as legal tender is of little economic benefit. Earlier on El Salvador’s parliament passed a historic bill to recognize Bitcoin as a legal tender. The “Bitcoin Law” bill was accepted by a majority of 62 out of 84 votes. The JPMorgan client note stated: “As with the dollarization in the early-2000s, this move does not seem motivated by stability concerns, but rather is growth-oriented […] But it is difficult to see any tangible economic benefits associated with adopting Bitcoin as the second form of legal tender, and it may imperil negotiations with the IMF.” Presently, El Salvador is in talks with the International Monetary Fund for a $1 billion funding program. The country is facing a potential $3.2 billion budget deficit in 2021.
Presently, Bitcoin is hovering below and above the $35,000 support. A rebound above the current support will catapult the crypto to retest the $39,000 resistance zone. Meanwhile, on April 25 downtrend, a retraced candle body tested the 50% Fibonacci retracement level. The retracement indicates that Bitcoin will fall to level 2.0 Fibonacci extension. From the price action, Bitcoin has retested the Fibonacci extension it is hovering above the $35,000 support.