Daily Market Recap – BTCUSD An upside potential appears

Bitcoi

gained more than +4% this week and is at a one-and-a-half week high,

moving back above the psychological 50,000 level and surpassing the

three-and-a-half-month high reached on August 23.

Sig

of mainstream acceptance of bitcoin are fuelling the current bitcoin

rally. Twitter's possible action to allow bitcoin as a payment option

illustrates the increased institutional interest in the cryptocurrency.

Additionally, September 7 is the day Bitcoin officially launches as a

legal tender in El Salvador.

According

to a recent report from MacRumors, Twitter may be laying the groundwork

to allow bitcoin payments in its Tip Jar feature. Twitter's latest

update introduces support for delivering content with bitcoin payments

using the Tip Jar feature that Twitter introduced earlier this year. The

addition of a bitcoin payment option comes after Twitter CEO Jack

Dorsey said in July that bitcoin was important to the company and would

be integrated with Tip Jar in the future.

O

Tuesday, September 7, El Salvador's bitcoin law will go into effect. O

that day, Salvadorans will be able to download the government's Chivo

digital wallet, enter their ID number and receive $30 in bitcoins. The

Salvadoran government has created a $150 million fund to support bitcoi

to U.S. dollar conversions and has established 50 financial centers

throughout the country to withdraw or deposit money. The government will

install 200 bitcoin ATMs to allow its citizens to convert bitcoins to

U.S. dollars and withdraw them in cash, as part of its plan to make

bitcoins legal tender. El Salvador will be the first country in the

world to use bitcoin as legal tender.

Cryptocurrencie

have surged this year due to increased institutional interest and

accelerating development in areas such as decentralized finance (Defi)

and non-fungible tokens (NFT). Fridays +3% rally in bitcoin has driven

other crypto-currencies higher. Ethereum (ETHUSD) rose more than +2% to a

3.5-month high, with the overall crypto-currency market jumping +5% to

$2.3 trillion.

Bitcoi

has cleared several hurdles in recent days: the 200-period moving

average and then the psychological threshold of 50,000. Analysts expect

it to close above the resistance level of 51,050 which held up prices

from a further surge a couple of days ago.

(Chart Source: Tradingview 05.09.2021)

Breaking

above this level releases a potential bullish move towards the May high

of USD 59,529. Traders may take advantage of this breakout and positio

themselves long on BTCUSD. Prices are now above the 20 and 34 period

ascending moving averages. This bullish scenario would be invalidated

below support at USD 46,726.

Support & Resistance Levels: 

R3       59,529

R2       57,145

R1       53,198

S1        50,000

S2        46,726

S3        42,500

Disclaimer:

This material has been created for information purposes only. All view

expressed in this document are my own and do not necessarily represent

the opinions of any entity.