To combat inflation and the depreciation of the Argentine peso, Argentines often turn to bitcoin.
Given that 37.3% of the population of South America is below the poverty line, bitcoin acts as an insurance against inflation for them, which is confirmed by the results of the Americas Market Intelligence study “Cryptocurrency Revolution in Payments in Latin America”.
According to the document, the penetration of cryptocurrency in Argentina reached 12%, which is twice as much as in Peru, Mexico and other countries of the continent. It is also reported that the amount of crypto payments of Latin Americans has almost reached half of credit card ownership, which indicates the impressive position of bitcoin in these countries.
The study provides an assessment of the trend of bitcoin accumulation – this is an indicator that reflects the relative size of organizations in bitcoins. It takes into account the balance of the subject’s bitcoins (assessment of participation) and the number of accumulated coins (assessment of balance change).
According to the cryptanalytics platform Glassnode, this indicator has almost returned to an ideal figure above 0.9. Such a high rate of accumulation of bitcoins after a significant correction reflects a shift in investor sentiment from uncertainty to purchases.
the CEO of CryptoQuant.com Ki Young Joo is confident that bitcoin is in the accumulation phase. According to him, institutional investors who stimulated bitcoin’s bullish growth in 2021 have purchased BTC in the range of $25,000 to $30,000.
Bitcoin’s growing dominance is considered a key factor in the asset’s growth above $31,708. Today, the price of BTC has recovered from falling below $30,000 with increasing dominance, reaching 44%, the highest level since October 2021.
Analyst CryptoQuant.com @venturefounder claims that after twelve months of consolidation, BTC’s dominance has finally increased. He believes that in the current cycle it may exceed the figure of 70%, while the most likely range is 50-63%.
On the daily price chart, the price of bitcoin highlighted bullish signals. The Relative Strength Index, developed by J. S. Miller. Wells Wilder, is an impulse oscillator that measures the speed and change of price movements. The RSI fluctuates between 0 and 100, currently shifting north to line 50. This level means increased demand among market participants and increased bullish pressure.
The Mid-Range Index (ADX) is a technical analysis indicator used to determine the strength of a trend. It reached the 40 mark, which indicates a strong bullish trend.
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