22.02.202212:51 Forex Analysis & Reviews: Mexican Billionaire Ricardo Salinas Pliego Says Buy Bitcoin While It's Cheap

The bitcoin rate is aiming at $36,000, and the ether is once again testing the support of $2,620. The fact that traders are alarmed by today's opening of the American markets, which the world's first cryptocurrency has been closely following lately, points to the nervousness of the situation even in the cryptocurrency market, especially in the context of a sharp escalation of geopolitical tensions. On the other hand, many technical indicators have long indicated a continuation of the bearish trend that began this year for some altcoins and tokens, and the recent growth, albeit so confident, does not yet prove a change in sentiment. Before talking in more detail about the technical picture of bitcoin and ether, I would like to say a few words about the president of the Central Bank of Peru, who recently criticized the value of cryptocurrencies.

Peru is developing its own digital currency

Julio Velarde, President of the Central Bank of Peru, recently stated that bitcoin does not have a negative impact on the economy, or the integrity of the financial system, but only on the environment. In a recent interview with local media, Velarde stated that the bank does not consider bitcoin as a payment method. Instead, Velarde called it a "highly volatile financial asset" that people buy because of the risk of volatility - oil.

However, it should be said that volatility, which many traders and investors have been so afraid of lately, on the contrary, is the attractive moment because of which they invest and buy cryptocurrencies. But the principles of bitcoin, as a protector against inflation, are not yet respected due to its high correlation with the U.S. stock market.

The official also noted that digital assets have a number of disadvantages compared to their fiat counterparts. One is the lack of intrinsic value of these assets. He explained that people can quickly lose interest in cryptocurrencies, and then the price can drop to zero.

However, Velarde forgets that the value of bitcoin lies in decentralization - in other words, in freedom, which will clearly never fade away. Velarde also cited the environmental concerns associated with the use and mining of cryptocurrencies, saying they pose a problem for the energy sector. There is no need to comment on this - such statements seem absurd, given how the environment is polluted by banal industrial production, chemical companies, and so on.

At the end of his speech, Velarde spoke about the progress made by the institution in developing its own digital currency. He stated that the bank is working on a document that will be submitted a month and a half after the meeting with the Central Bank of India and the International Monetary Fund. The central bank president was quick to compare fiat digital counterparts to cryptocurrencies, explaining that they would enjoy the backing of central banks. "I believe that the path we must take is one in which we accompany growth by giving guidelines and setting certain parameters in the new regulations of the digital game," said Velarde.

Buy Bitcoin while it's cheap

And while the authorities and politicians of various countries criticize the cryptocurrency industry, the third richest billionaire in Mexico, Ricardo Salinas Pliego, advises buying bitcoins and not thinking about selling. Salinas is the founder and chairman of Grupo Salinas, a group of companies involved in telecommunications, media, financial services and retail sales. According to the Forbes list of billionaires, his net worth currently exceeds $13 billion. On Saturday, the billionaire tweeted urging his followers to buy Bitcoin while the price is still low. This isn't the first time Salinas has strongly recommended buying Bitcoin. Last June, he explained: "Bitcoin is an asset that has extraordinary properties. All the advantages that bitcoin has, for me, make it gold for the modern world."

As for the technical picture of Bitcoin

Bitcoin has already broken the $38,000 level and is heading confidently to the $36,000 area, and to be precise, to the $35,690 level, where the trail of large players will clearly be visible. Maybe this is the cheap bitcoin that the Mexican billionaire was talking about. The current fall of bitcoin is not related to its fundamental features. Everything is tied to the levels of investor greed and their intimidation of what is happening on the world stage. A breakdown of $35,690 will fail the trading instrument lower to a minimum of $32,910, and there it is within easy reach to $29,240. It will be possible to talk about a bear market stop in the current conditions only after BTC returns above $41,000, from where you can count on a recovery to the area: $44,720 and $48,550.

As for the technical picture of the Ether

The emphasis remains on the resistance of $2,830, only a consolidation above will return the market to the prospect of an upward correction. In the meantime, a major bearish trend is brewing. Only a breakdown of $2,830 will serve as a new impetus to reach the level of $3,139 and $3,362. If the pressure on ETH continues, buying in the area of a major support of $2,586 is possible. Breaking through this range is a direct path to the lows: $2,350 and $2,149, where the major players will be active again.