Good morning, traders.

The BTC/USD was closed at $52,676.0 after placing a high of $52,709.0 and a low of $51,062.0. BTC/USD continued with its bullish momentum for the seventh consecutive session on Monday and reached above $52,000 level, its highest in four months.

El Salvador Officially Declared Bitcoin as Legal Tender

Bitcoin was high on the board a day before the cryptocurrency will be officially declared legal tender in El Salvador from the announcement of the country President, Nayib Bukele. He said that the country had bought its first 200 BTC ahead of the deadline and has plans to buy a lot more in the future.

The purchase of bitcoin from El Salvador means that it has become the first country in the world to put Bitcoin on its balance sheet and hold it in its reserves. Adding a cryptocurrency to their reserves could make a solid bet on the future of the country. The saving and growth of the wealth that no government or central bank can print more of due to its limited supply of 21 million BTC will be a unique experience for a country as it was the first of its kind.

El Salvador’s Congress Approved a Law to Create a $150 Million 

In preparation for bitcoin becoming legal tender, El Salvador’s Congress approved a law on August 31 to create a $150 million fund to facilitate conversions from bitcoin to U.S. dollars. Meanwhile, a growing number of bitcoin supporters were planning to buy$30 worth of BTC to show their support for El Salvador’s Bitcoin Law. President Nayib Bukele has promised to give #40 worth BTC to anyone who uses the government’s bitcoin wallet named Chivo.

Furthermore, more than 200 ATMs and 50 bank branches featuring the government’s Chivo wallet have been installed in different parts of the country where the users and deposit and withdraw money without paying commissions. BTC/USD was enjoying the preparations for the launch of Bitcoin Law and remained higher on board on Monday. Meanwhile, Ricardo Salinas Pliego, the owner of a leading banking and retail company in Mexico, Group Elektra, announced on Monday that the corporation was set to support the Bitcoin Lightning Network by integrating Bitcoin’s layer two solutions on its Elektra store network. 

The launch of the new payment system from Elektra will be commenced soon, and the users could make a purchase in bitcoin via the MuunWallet, which will also boost the adoption in Mexico. However, Mexico’s Central Bank quickly shot down Pleigo’s plans to give clients access to bitcoin and reiterated that the virtual assets were banned in Mexico’s financial system due to risks involved with the asset class. This news mixed sentiment to the BTC/USD prices, and the cryptocurrency kept following the bullish track.

Bitcoin Miners Arranged a Meetup in Houston

Additionally, the BTC/USD prices surged on Monday as oil producers and bitcoin miners arranged a meetup in Houston to discuss possible on-site crypto mining opportunities. To talk about the alliance, more than 200 investors attended the meeting to get to know whether such alliance could take place as it will not only allow oil producers to make more efficient management of their resources but will also provide benefit to miners of direct sources of energy that would be wasted otherwise.

Moreover, Vietnam has recently reported increased demand for crypto mining equipment as more people joined the sector, given the rising prices of Bitcoin, Ether, and other cryptos. Bitcoin is trading at a multi-month high above $51,000, and it has pushed people in Vietnam to focus on crypto mining. 

An entrepreneur with a chain of shops that supplies crypto mining equipment in Ho Chi Minh City has revealed that the sales have tripled in early September compared to last month’s figures. This also supported the prices of BTC.USD and pushed it higher.

Bitcoin (BTC/USD) Technical Outlook – Pivot Point Support at 52149.0

The major currency BTC/USD is trading with a positive trend at 52,642 on Tuesday, with immediate support at 52,300. On the downside, the pair is testing another level of support at 51,650. The breach of the 51,650 support level, on the other hand, opens the BTC/USD pair to support levels of 51,200 and 50,850.

Bitcoin (BTC/USD) Daily Technical Levels

Support Resistance

51589.0 53236.0

50502.0 53796.0

49942.0 54883.0

Pivot Point: 52149.0

The breakthrough of the 52,850 resistance level, on the other hand, exposes Bitcoin to the 53,450 and 54,025 levels. Bitcoin’s RSI and 50 EMA support a bullish bias. As a result, the attention should remain on 52,150, as the bullish bias is still strong above it and vice versa. Good luck!