El Salvador Was First To Embrace Bitcoin
by Bogdan Giulvezan
Recently we’ve learned that El Salvador passed legislation that made Bitcoin legal tender in the country, which means that the flagship cryptocurrency will be accepted as a form of payment at all businesses, just like the US Dollar.
News surfaced today that Carlitos Antonio Rejala Helman, a Deputy of the Nation and Member of Congress in Paraguay plans to introduce Bitcoin legislation as soon as July. It is not clear what type of legislation the Deputy is planning to introduce and how far its reach will extend but either way, this is good news for Bitcoin and it looks like a domino effect is in play. If this Paraguay legislation will pass, just a few weeks after El Salvador’s acceptance of Bitcoin, then maybe other countries will follow soon, thus increasing the bullish pressure which seems to be building up.
MicroStrategy recently announced that it had completed a $500 million offering for debt notes and that the proceeds will be used to buy Bitcoin. Currently, the business intelligence firm holds over 92,000 BTC, and the new purchase should put its balance sheet above 100K BTC, thus making it the biggest Bitcoin hodler among publicly traded companies.
Adding to all of the above, Elon Musk confirmed that Tesla would start accepting Bitcoin again if at least 50% of the mining power would come from green energy. Despite the bullish news, Bitcoin failed to stabilize above the key resistance at $40,000, which it broke earlier in the week.
Technical Outlook – BTC/USD
At the time of writing, Bitcoin is trading at $37,930, above a recently broken trend line but below the crucial level at $40,000. This could be the case of a false break but it could also be the beginning of a stronger move up because often time price bounces above and below an important level before finally deciding a direction.
Despite the recent climb, price action still looks bearish as the pair failed to establish a significant higher-high, and it is still trading below the 50 days Moving Average, which has a steep downward slope. The MACD is moving north but its lines do not show strong momentum, while the Relative Strength Index is almost flat and doesn’t offer a lot of clues.
For the time being the pair is still trading in a range, without a clear bias but as we know, Bitcoin can cover a lot of ground in a short while once it decides a direction. Given the latest slew of positive news, it’s possible to see a move closer to the 50 MA, but if the pair returns below the bearish trend line, we may be in for another visit of the $30K support.