The cryptocurrency market continues to be in recovery from the May market crash, with Bitcoin gaining over almost 25% in the past week trading at above $37,000. Although the digital asset market appears to have lost strength in the past few weeks, positive news in the industry could give the crypto market another boost.
Bitcoin makes history as El Salvador adopts BTC
This week, El Salvador become the first country in the world to adopt Bitcoin as legal tender after President Nayib Bukele proposed to embrace the cryptocurrency.
According to Bukele, Bitcoin has the potential to help its citizens to send remittances back home efficiently and cost-effectively. He added that the US dollar will also continue as legal tender as well.
Leveraging the country’s geothermal potential, President Bukele further floated the idea to build a Bitcoin mining hub.
Bitcoin price has been fueled by the news, rising by 15% since the announcement was made. However, investors should note that BTC still lacks strength at the moment, as it is currently consolidating in a descending parallel channel.
While the move to accept Bitcoin as legal tender may be a bold move from El Salvador, the International Monetary Fund has raised legal and financial concerns regarding the adoption of the leading cryptocurrency.
If Bitcoin continues to make lower lows, following the trend in the channel, BTC could drop to the immediate demand zone that falls below the 2020 high seen in December, and the January low.
Bitcoin price structure suggests that more strength may be needed before a move to the upside can be expected, as the 200-day moving average continues to act as tough resistance.
While Bitcoin price continues to indicate indecision, it is essential for traders to set stop losses around major support areas to avoid steep losses. A demand zone could also be an area where speculators could look to enter the market before Bitcoin sees accelerated interest.
With CoinPanel, traders would not have to decide between setting stop-losses and take-profits, especially essential during a time of heightened indecision. Using the CoinPanel crypto trading automation platform, users can set both take-profit and stop-loss orders without having the balance blocked when trading on exchanges.
Speculators could even take any opportunity to buy the dip as an entry, and use the Full Trade feature on CoinPanel, while setting levels to take profit and stop losses ahead of time according to their strategies. In addition to not having to block your balance, CoinPanel automatically adjusts the stop-loss level after you have taken your profits, to balance out your trade while continuing to protect your gains.
The crypto market has already seen a massive crash during mid-May, which further proven the necessity of using a platform that allows for stop-market orders, which is not available on exchanges like Binance. Since stop-market orders trigger a market order at the determined price, it would help a trader get out of their position efficiently compared to stop-limit orders when volatility strikes.
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