Bitcoin Price Gains 1.5% To $42K While El Salvador Dives Into BTC Mining

  • Bitcoin price has risen 1.5% over the last 24 hours to trade above $42,000.
  • President Bukele Shows El Salvador’s “First Steps” in volcano Bitcoin mining.
  • Breaking above the $44,000 level is crucial to BTC’s decisive bullish breakout.

Bitcoin price has gained over 1.5% over the last 24 hours as bulls strive to recover the losses triggered by the market’s knee-jerk reaction to China’s crackdown on last week. This suggests that the BTC investors have absorbed the news as others take the chance to This is good news for crypto advocates because in just a short period of time, El Salvador has legalised the use of Bitcoin, provided the Chivo Wallet, and built the Chivo ATMs and Cashpoints. Now, the country is mining the most difficult crypto asset with the most renewable and cleanest energy.

This among other fundamentals such as continued cryptocurrency adoption such as Switzerland approving the first cryptocurrency fund is expected to propel BTC higher.

In an announcement made earlier today, the Swiss Financial Market Supervisory Authority (FINMA) said:

The Swiss Financial Market Supervisory Authority FINMA has approved the first crypto fund according to Swiss law. The fund, which is restricted to qualified investors, invests primarily in so-called cryptoassets.”

Such positive industry news are expected to propel Bitcoin price to gain momentum over the next few days.

Overcoming the $44,000 Level Crucial For Bitcoin Price Bullish Breakout

At the time of writing, Bitcoin (BTC) is trading at  $42,367 on most crypto trading platforms with a bullish bias and appears to be battling immediate resistance provided by the $43,000 psychological level.

Note that a closure beyond this level would see the Bitcoin price rally to retest the $44,000 psychological level. But BTC will have to overcome the  $43,452 resistance first. A clear bullish breakout will be achieved when BTC rises above the $44,000 level. If this happens, Bitcoin price may rise to tag the 200-day SMA at $45,725 or the 50-day SMA at $47,362.

BTC/USD Daily Chart

Bitcoin Price Daily Chart
Bitcoin Price Daily Chart. Source: Tradingview

On the flip side, if the bellwether cryptocurrency favours the bears, the Bitcoin (BTC) price may fall below the immediate support around $41,495 embraced by the 100-day SMA. If this happens, Bitcoin will fall towards the $38,493 support wall.

This bearish outlook is validated by the position of the MACD below the zero line in the negative region. In addition, the position of the Stochastic RSI at 30.04 is an indication that the bears are in control of the BTC price.

 

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