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BTC as legal tender

BTC as legal tender; ETH, XRP, ZEC, XLM ideas

09 Jun, 2021
Martin Petkov

Hello and welcome, everyone. It's Martin here with CryptoGains. The main news from the crypto world today is that officially Bitcoin has become a legal tender in the small country of El Salvador. And just to make it clear what exactly that means, it means that for Bitcoin to be accepted to tender that no one has the right to refuse Bitcoin for payment in the country. And even though many countries have provided various options for paying by Bitcoin, El Salvador is the very first one to do so on a national level. And it's believed that this is going to drive similar moves in other countries, consequently massively increasing Bitcoin adoption and acceptance and potentially driving prices towards recovery.

Some other positive news comes from MicroStrategy, which received over $1.5 billion in orders for the $500 million in debt that it was issuing in order to fund Bitcoin purchases. This is oversubscription by nearly three times, signifying very healthy and very strong demand for Bitcoin.

Interestingly, however, the number of Ethereum transfers has hit a monthly low. But, nonetheless, what's interesting to observe is that Ethereum dominance is growing because there is a lot of organic demand. Ethereum is used to build a variety of applications, and we're seeing support of the prices, even if billionaires do not keep buying it, which is quite different from Bitcoin, which is resting on the need for institutional investment.

And finally, there are some developments on the case with Ripple as it filed an objection to the SEC's request to demand an extension, suggesting that, likely, if this is approved, it's going to affect quite significantly the chances for Ripple winning the case. So, to me, this is a mixed bag of news. It may drive Ripple prices higher, but, at the moment, it seems to be priced already, so actually, the market presents good buying opportunities.

Let's move to the charts and see how we can trade that. For Bitcoin, I like prices above $34,000 before initiating long positions. The first target is at $35,000 and then at $36,300. Conversely, below $34,000, I'm seeing more downside. The first Take Profit target is $32,500 and then at $31,500 for short positions in Bitcoin.

Next, we're moving to Ethereum. For Ethereum, I like to see a break above $2540 before initiating long positions, with targets at $2650 and $2734. If we continue trading below $2540 like now, to me, the downside prevails with the first target at $2430 and then further down to $2360 on the short side.

Now, let's take a look at Ripple. Ripple comes with a buy signal at the time of filming. However, I'd like to see it above $0.87 before initiating long positions. Ideally, retests of that level and then confirming that the direction is up, with the first target at $0.925 and then $0.97. Conversely, below $0.87, a downside is quite possible, taking us to the first target on the short side at $0.836 and then $0.80.

Now, let's move to Zcash. Zcash also comes with a buy signal at the time of filming. However, it's retraced somewhat. So I like to break above $132 before initiating long positions, with the first target at $138 and then $147.50. Conversely, below $132, selling Zcash, with the first target at $125 and then further down on $120.

And finally, let's take a look at Stellar. Still risk correcting its gains from earlier, and I'd like to see it above $0.345 to initiate long positions, with targets at $0.355 and $0.375. Conversely, below $0.345, selling or shorting Stellar, with the first target at $0.33 and then $0.32.

Thanks for joining me today. Keep learning with the video education section and the CryptoGains Market Insights subsection. And remember to join the Crypto Signals Made Easy channel, where I'm sharing daily lots of insightful articles and trading ideas. 

Trade wisely, and I'll see you soon.

Bye-bye.

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