Bitcoin Surges Above $49,000 – Downward Trendline Breakout

 [[BTC/USD]] closed at $48,844 after placing a high of $48,102.0 and a low of $46,600.0. BTC/USD found some support on Wednesday and reversed its bearish trend to recover some of its previous losses. The bitcoin price moved closer to the $50,000 mark, and the spike could be attributed to the recent positive developments surrounding the cryptocurrency market space.

El Salvador’s Legislative Assembly has passed legislation and created a $150 million Bitcoin Trust to support the development of crypto infrastructure and services across the country. On Tuesday, about 64 official voters voted in favor of this law, while 14 opposed creating the trust.

This news came exactly one week before the controversial Bitcoin Law was set to take effect, adding further strength to BTC/USD. On September 7, the Bitcoin Law will make BTC a legal tender in El Salvador. Meanwhile, the social media giant, Twitter, was reportedly making Bitcoin another payment method for renewing content creators on the platform. The reports have suggested that the company was integrating a Bitcoin payment option for its new “Tip Jar” feature with the help of the lightning network.

The network users will be guided through a Bitcoin tutorial that will include details about wallets and the Bitcoin lightning network. The integration of Bitcoin tips was not unexpected, as Jack Dorsey told investors in July that the leading cryptocurrency would be a big part of Twitter’s future. The launch date of this feature is yet to be revealed, but the news about using the lightning network to add Bitcoin into the payment method for tips on Twitter gave a massive push to BTC/USD on Wednesday, and the prices reached close to the $50,000 level.

The President of Belarus, Alexander Lukashenko, has recently urged his citizens to stay in their home country and mine Bitcoin instead of moving abroad for a low-paying job. He urged citizens not to travel to Poland or Germany to fill farming positions but to work in their home country by mining the crypto. He provided mining as an alternative source of income, which could give them higher incomes than being a farmer in Germany or Poland.

The bitcoin mining process could be a lucrative business in places with cheap energy sources. Lukashenko urged his citizens to avail themselves of the opportunity and benefit from cheap energy sources in their home country and earn more income while staying with their families. This news added further gains to the already rising prices of BTC/USD.

On the other hand, the rising prices of BTC/USD could also be attributed to the prevailing weakness in the U.S. dollar. The greenback was depressed on Wednesday and dropped for the fourth consecutive session towards the 92.5 level amid the recent ADP jobs creation release. The private sector of the United States added fewer than expected jobs in August, and this weighed heavily on the greenback.

Furthermore, the faded hopes of any hints on the tapering timeline by the Fed Chair during the Jackson Hole symposium also kept the U.S. dollar under pressure throughout the weekend. The declining prices of the U.S. dollar added further gains to BTC/USD as they are negatively correlated.

BTC/USD, the most popular cryptocurrency pair, is currently trading with a bullish bias at 49,356, having broken through the resistance level of 49,071. Because Bitcoin has already breached the previous high, it is vulnerable to making a new high on Thursday.

Support Resistance
47262.0 49764.0
45680.0 50684.0
44760.0 52266.0
Pivot Point: 48182.0

The pair’s primary resistance remains at 50,476, and a breach of this level exposes the pair to levels of 51,880. At the same time, support is still holding at 49,071 levels. A bearish break of this level exposes the pair to the level of 47,960. The Stochastic is in a purchasing zone today, indicating that Bitcoin is on the rise. Best wishes!