Symmetrical Triangle Breakout
The BTC/USD was closed at $40,500 after placing a high of $40,732 and a low of $38,812. Bitcoin extended its gains for the second consecutive session and reached above $40,000 level. The U.S. billionaire hedge fund manager and a prominent legacy investor Paul Tudor Jones III believed that bitcoin was as sure as math. He wanted to have at least 5% of his portfolio in it. He doubled down his bitcoin support by insisting that it was reliable, secure, honest, and 100% certain. He has been vocally praising the leading cryptocurrency ever since the coronavirus pandemic broke out last year. He argued that buying bitcoin would ultimately protect him from the growing threat of inflation in the U.S. as the Fed has initiated radical measures to fight the financial consequences of the pandemic by printing excessive amounts of dollars. Bitcoin saw a price surge after these comments from Jones.
Meanwhile, the software firm MicroStrategy said it had completed its $500 million offerings of secure notes. The funds after accounting for discounts, expenses, and commissions will be used to purchase more Bitcoin. The secured notes are due in 2028, and they bear interest rates at an annual rate of 6.125%. This news also added strength to bitcoin prices. In addition, a Central American country, El Salvador, became the first country to adopt bitcoin as a legal tender last week. President Nayib Bukele praised the potential of the cryptocurrency and made it a remittance currency for Salvadorans overseas.
According to Reuters, the small transfers of bitcoin to El-Salvador jumped over four-fold in May from a year ago; however, they still represent a small amount compared to remittances sent in dollars. According to World Bank, El Salvador is heavily reliant on remittances as about$6 billion were transferred using traditional money in 2019, which accounted for about 5th of its GDP, the highest proportions in the world.
However, the Central American Bank of Economic Integration (CABEI) has said that it will work with El Salvador to implement BTC as its second legal tender. It will be done by creating a team in collaboration with El Salvador’s Ministry of Finance, the Central Reserve Bank of El Salvador, and its central bank. This news also added strength to the prices of bitcoin and pushed them on the upside.
BTC/USD Intraday Technical Levels
Pivot Point: 40014.7
BTC/USD - Technical Outlook**
On Tuesday, the BTC/USD price continues trading with a bullish bias at the 40,268 level after violating the downward trendline and symmetrical triangle resistance level of 40,403 level. For the moment, Bitcoin is gaining support at 39,120 level along with a resistance of 42,058 level. The MACD has crossed over 0 (crossover point), demonstrating solid bullish bias among investors. The 50 periods EMA also supports an upward movement in the BTC/USD pair and the Three White Soldiers candlestick pattern. Bitcoin’s resistance stays at 42,058 and 45,706 levels today. All the best!
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