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New Twitter Tipping Feature Helps Bitcoin Growth

Over the past few weeks, we have seen an increase in the volatility of digital currencies. For example, Bitcoin’s price has gone through many ups and downs after El Salvador made it legal tender, and Twitter confirmed it would be one of the currencies accepted under their new tip feature.

After Bitcoin as a means of payment in El Salvador, which seemed like a historic moment and a real revolution, it experienced a lot of volatility. The uncertainty in the market caused a robust downward movement in prices for various cryptocurrencies.

During trading sessions before legalized it in El Salvador, Bitcoin experienced a strong rebound, which saw it once again start trading in an area close to $ 53,000.

Technical problems that arose in connection with the implementation of the project in Central America, Bitcoin suffered a severe failure, resulting in a bearish candle with a daily range of more than $ 10,000 between the high and low prices of the trading session.

Caused a substantial fall in some cryptocurrencies by an average of 20%: Bitcoin, Ethereum, Litecoin, and Ripple ended the trading session with falls of 11.19%, 12.84%, 18.90%, and 19.18%, respectively.

After a couple of weeks of uncertainty, the price began to recover and fight for the 200-day moving average but collapsed, reaching the 50% Fibonacci retracement level and $ 40,000 per bitcoin. Here, it looks like the price has finally found support to form a new upward impulse.

The company recently confirmed that Bitcoin would be one of the currencies accepted for making payments in a new “tip” feature tested in May. This feature allows content creators to generate income and payouts from their followers for their tweets to the social network.

The daily chart of Bitcoin shows that following the technical problems that El Salvador faced in introducing bitcoin as legal tender, the price moved sharply downward, resulting in a loss of the $ 40,000 level in the middle of this week.

The area between the 200-day moving average (red) and the $ 40,000 level is currently the main support level. As long as the price maintains this level, the general market sentiment will remain positive. However, the loss of this level will lead to further correction. As a result, the price may move to annual lows near the level of $ 30,000, marked by the lower red band.

On the other hand, the price should face several resistance levels, and it seems that its short and medium-term moving averages (white and orange) may form a bearish crossover. Therefore, it is worth watching the price closely: if it fails to break these levels upwards, it may return to monthly lows.

A bullish breakout of the first resistance level could cause the price to partially recover and continue to move towards the $ 50,000 level. However, until the price breaks the downtrend line, you should not expect a strong upward movement in the short/medium term.

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