\r
Bitcoin bounced off the 20-day exponential moving average (EMA)($22,846) on Aug. 7 and the momentum picked up on Aug. 8. The buyers pushed the price above $24,000 and could challenge the overhead resistance at $24,668.\r
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The 20-day EMA is sloping up and the relative strength index (RSI) is in the positive territory, indicating that bulls are in control. If buyers propel the price above the overhead resistance, the BTC/USDT pair could pick up momentum and rally to $28,000 as there is no significant resistance in between. The bears may try to stall the recovery at this level but if bulls overcome this barrier, the up-move could reach $32,000.\r
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Contrary to this assumption, if the price turns down from $24,668, the pair could drop to the 20-day EMA. This is an important level to watch out for because a break below it could drag the price to the 50-day simple moving average (SMA($21,594). A break below this level could put the bears back on top.\r
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Source-CoinTelegraph

El Salvador’s dollar debt dives on Bitcoin bond plans
Investors have grown weary of El Salvador’s dollar debts as the country further adopts Bitcoin. Meanwhile, the IMF has recommended that BTC not be used as legal tender.

El Salvador’s dollar-denominated bonds have fallen to an all-time low as the Central American nation’s debt started trading in “distressed territory” this week.

El Salvador’s United States dollar bonds fell to $0.644 on Monday, Nov. 22, following the weekend news that the Central American country would use Bitcoin (BTC) bonds to fund its Bitcoin City initiative. Dollar bonds have fallen steadily since April 2021 when they topped $1.10 according to Bloomberg data.

A dollar-denominated bond is a bond issued outside of the U.S. by a foreign company or government that is denominated in USD instead of local currencies.

Monday’s drop resulted in the country’s debt becoming among the worst performers in global trading, Bloomberg reported. Investors are concerned that President Nayib Bukele has shut out the International Monetary Fund (IMF) from assisting the nation with development funds.

Nathalie Marshik, managing director of investment banking company Stifel Nicolaus, commented that “this announcement cements the ‘anything-but-the-IMF’ path” before adding that bonds are falling “as the market reassesses possible recovery value lower on the unpredictability of policies.”

The Bitcoin bond will pay 6.5% annual interest in addition to 50% of El Salvador’s Bitcoin gains once its initial investment costs for its mining infrastructure have been recovered. Dividends will be paid in USD or Tether (USDT), according to Samson Mow, chief strategy officer of Blockstream.

Mow believes that the Bitcoin bond will be an alternative way for institutional investors to gain exposure to Bitcoin without having to hold Bitcoin themselves. It will also be a way for investors to help El Salvador develop more rapidly. Mow, who has been working with the El Salvador government on developing the Bitcoin bond, told Bloomberg TV on Tuesday:
“We’re trying to structure this in a way that people can present [the Bitcoin bond] to boards and directors as a normal bond because it is a normal bond. It just happens to have a large chunk of Bitcoin tied in.”
Source - Coin Telegraph