BTC/USD Analysis – September 07, 2021

Upward Channel Support Bullish Trend

After reaching a high of $52,709.0 and a low of $51,062.0, the BTC/USD pair was closed at $52,676.0. On Monday, BTC/USD maintained its positive trend for the seventh straight session, reaching $52,000, its highest level in four months. Bitcoin was trading at a high level a day before the country's president, Nayib Bukele, announced that the cryptocurrency would be formally proclaimed legal tender in El Salvador. He claimed that the government has purchased its first 200 bitcoins ahead of schedule and intends to purchase many more in the future.

El Salvador has become the first nation in the world to place bitcoin on its balance sheet and store it in its reserves, thanks to the acquisition of bitcoin. Putting a cryptocurrency to their savings could be a sound investment in the country's future. Because it is the first of its type, the saving and growth of wealth that no government or central bank can create more of due to its finite quantity of 21 million BTC will be a once-in-a-lifetime event for a country.

El Salvador's Congress enacted a measure on August 31 to create a $150 million fund to assist conversions from bitcoin to US dollars in preparation for bitcoin becoming legal cash. Meanwhile, an increasing number of bitcoin enthusiasts planned to purchase $30 worth of BTC to demonstrate their support for El Salvador's Bitcoin Law. Nayib Bukele, the country's president, has vowed to provide everybody who uses the government's Chivo bitcoin wallet #40 worth of BTC.

Furthermore, more than 200 ATMs and 50 bank branches with the government's Chivo wallet have been installed in various parts of the country, allowing users to deposit and withdraw funds without paying commissions. BTC/USD was enjoying the build-up to the launch of Bitcoin Law on Monday, and it remained higher on the day. Meanwhile, on Monday, Ricardo Salinas Pliego, the founder, and CEO of Group Elektra, a significant banking and retail organisation in Mexico, stated that the company would support the Bitcoin Lightning Network by incorporating Bitcoin's layer two solutions into its Elektra store network.

Elektra's new payment system will be launched soon, and consumers will be able to buy bitcoin via the MuunWallet, which will help to increase acceptance in Mexico. Pleigo's ambitions to allow consumers access to bitcoin were promptly shot down by Mexico's Central Bank, which emphasized that virtual assets were outlawed in the Mexican financial system due to the risks associated with the asset class. This news caused a mixed reaction in the BTC/USD market, but the cryptocurrency rose.

Additionally, the BTC/USD exchange rate rose on Monday as oil producers and bitcoin miners met in Houston to discuss the possibility of on-site crypto mining. More than 200 traders attended the meeting to learn more about the alliance, which would help oil companies manage their resources more efficiently and benefit miners of direct sources of energy that would otherwise be wasted.

Furthermore, given the soaring prices of Bitcoin, Ether, and other cryptos, Vietnam has lately reported growing demands for crypto mining equipment as more people enter the field. Bitcoin is currently trading at a multi-month high of around $51,000, prompting many Vietnamese to turn their attention to crypto mining. According to an entrepreneur, in early September, sales at a chain of businesses in Ho Chi Minh City that offer mining equipment tripled compared to the previous month's data. BTC.USD prices were also supported and pushed higher as a result of this.

BTC/USD Intraday Technical Levels

Support Resistance

51589.0 53236.0

50502.0 53796.0

49942.0 54883.0

Pivot Point: 52149.0

BTC/USD - Technical Outlook 

On Tuesday, the leading cryptocurrency BTC/USD is trading with a bullish bias at 52,642 level, gaining an immediate support at 52,300 level. On the downside, the pair is facing another support at the 51,650 level. However, the 51,650 support level breakout exposes the BTC/USD pair to 51,200 and 50,850 support zones.

Conversely, the breakout of the 52,850 resistance level exposes the Bitcoin towards the 53,450 and 54,025 levels. The RSI and 50 EMA support a bullish bias in Bitcoin. Thus, the focus should remain on 52,150 as the bullish bias remains dominant above this level and vice versa. All the best!