Bitcoin Price Rises: Why $38,000 is Crucial for BTC
[[BTC/USD]] closed at $38,525.0 after hitting a high of $39,350.0 and a low of $38.039.0. Bitcoin continued its consolidated momentum and continued moving in a tight range for the 12th consecutive session on Tuesday. Recently, a bill was presented by a Republican senator to the state legislature in Arizona to adopt BTC as a payment method. The bill has to get the approval of state legislators to proceed for further approval from the U.S. Congress. The proposal was presented last Tuesday, and now it awaits the final vote in the state senate, which will be held on Wednesday.
Remarks from Mexican Senator Support Bitcoin
Mexican Senator Indira Kempis Martinez said that adopting Bitcoin as a legal currency is an opportunity for national growth. The same senator in October 2021 congratulated El Salvador on its decision to make Bitcoin a national currency. She has openly disagreed with the President of Mexico, who denounced the decision and declared that it would not happen in Mexico. She has said that making BTC legal tender will be a great opportunity for the country’s growth. These positive comments from Martinez supported BTC/USD on Tuesday.
Furthermore, the Vice Prime Minister of Ukraine, Mukhailo Fedorov, has remarked that Bitcoin mining will make Ukraine a high-tech state after the government legalized cryptocurrency last September. He was confident that the development of the crypto industry could attract transparent investors and empower the country’s identity within the high-tech realm.
On the other hand, on Tuesday, the filing from the United States Securities and Exchange Commission suggested that MicroStrategy purchased 660 BTC between December 30th and January 31st for approximately $25 million. MicroStrategy bought the dip in Bitcoin and purchased about 660 BTC tokens in one month of its declining prices. On average, the company pair is about $37,865 per bitcoin.
Bitcoin Supported amid Nayib Bukele’s Bullish Prediction
Additionally, the President of El Salvador, Nayib Bukele, made another bullish prediction about the leading cryptocurrency soon after the IMF urged the country to remove the legal tender status of Bitcoin. On Monday, Bukele predicted that Bitcoin would ultimately see a gigantic price increase due to its limited supply of only 21 million digital coins.
He further explained that there were more than 50 million millionaires in the world, and if each of them wanted to own at least 1 BTC, then there was not enough Bitcoin in the supply. This optimistic prediction from Bukele also added some support to the consolidated prices of BTC/USD.
Daily Technical Levels
Support Resistance
37215.3 39304.4
35904.6 40082.8
35126.2 41393.5
Pivot Point: 37993.7
Bitcoin (BTC/USD) Technical Outlook
Bitcoin’s price breaks above the $38,000 resistance level, and now it’s trading at $38.635. A low was formed near $38,200, and the price began to rise again. Furthermore, on the hourly chart of the BTC/USD pair, there was a break above a major bearish trend line with resistance near $37,450. A high has been formed near $38,786, and bitcoin is now facing significant resistance near the $38,800 level.
Bitcoin is trading near the 23.6 percent Fib retracement mark of the upward move from the swing low of $36,667 to the high of $38,786. On the upside, an initial resistance level is near $39,500. A clear break above the $39,500 level could increase the price. The next significant resistance level is around $40,500.
If the bulls can break through the $39,500 mark, the price may break through the $40,000 resistance zone. Alternatively, the first significant support is seen near $37,750. It is close to the 50% Fib retracement level of the upward move from the swing low of $36,667 to the high of $38,786. If the price falls below the $37,500 support level, it may move towards the $37,000 level.
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