To combat inflation and the depreciation of the Argentine peso, Argentines often turn to bitcoin.
Given that 37.3% of South America’s population is below the poverty line, bitcoin acts as their insurance against inflation, as evidenced by the results of the Americas Market Intelligence study “The Cryptocurrency Revolution in Payments in Latin America.
According to the document, cryptocurrency penetration in Argentina reached 12%, twice as high as in Peru, Mexico and other countries of the continent. It also reports that the amount of cryptopayments by Latin Americans has almost reached half of credit card ownership, indicating bitcoin’s impressive position in these countries.
The study provides an estimate of bitcoin accumulation trend, an indicator that reflects the relative size of organizations in bitcoins. It takes into account an entity’s bitcoin balance (participation score) and the number of coins accumulated (balance change score).
According to cryptoanalytics platform Glassnode, this indicator is almost back to a perfect score above 0.9. Such a high bitcoin accumulation rate after a significant correction reflects a shift in investor sentiment from uncertainty to buying.
CryptoQuant.com CEO Ki Young Joo is confident that bitcoin is in an accumulation phase. Institutional investors who have driven bitcoin’s bullish growth in 2021 have bought BTC in the $25,000 to $30,000 range, he said.
Bitcoin’s growing dominance is considered a key driver of the asset’s rise above $31,708. BTC’s price recovered today after falling below $30,000 with increasing dominance reaching 44%, its highest level since October 2021.
CryptoQuant.com analyst @venturefounder says that after twelve months of consolidation, BTC’s dominance has finally increased. He believes it could exceed 70% in the current cycle, with the most likely range being 50-63%.
On the daily price chart, the bitcoin price has highlighted bullish signals. The Relative Strength Index, developed by J. Wells Wilder, is a momentum oscillator that measures the speed and change of price movements. The RSI fluctuates between 0 and 100, and currently it has shifted north to the 50 line. This level signifies increased demand among market participants and increased bullish pressure.
The Average Directional Index (ADX) is a technical analysis indicator used to determine the strength of a trend. It has reached the 40 mark, indicating a strong bullish trend.