Bitcoin Surges on Argentina-El Salvador Crypto Collaboration News

Arslan Butt•Tuesday, May 28, 2024•2 min read

Bitcoin (BTC) surged past the psychologically important $70,000 mark on Monday, fueled by reports of a collaboration between Argentina and El Salvador to boost cryptocurrency adoption.

Argentina Seeks Guidance from El Salvador

Argentina’s National Securities Commission (CNV) is collaborating with El Salvador’s National Commission of Digital Assets (CNAD) to explore crypto adoption and regulation strategies. El Salvador, the first country to adopt Bitcoin as legal tender, is seen as a pioneer in the crypto space. Argentina seeks to learn from their experiences to potentially develop its own approach.

CNV President Roberto E. Silva highlighted El Salvador’s leadership in the digital asset space and expressed Argentina’s desire to strengthen ties and explore collaboration agreements.

Bitcoin ETFs Reach 1 Million BTC Milestone

Bitcoin ETFs worldwide now hold a record 1 million BTC, according to a recent post by MicroStrategy CEO Michael Saylor. This significant milestone could contribute to a potential Bitcoin rally.

The US holds the majority of Bitcoin ETFs, with Grayscale, BlackRock, and Fidelity leading the pack. Offshore ETFs in countries like Canada and Germany have also seen a rise in holdings.

This development coincides with former US President Donald Trump’s renewed pro-crypto stance, potentially attracting further investor interest.

Bitcoin Rainbow Chart Suggests Buying Opportunity

Despite recent price fluctuations, the Bitcoin Rainbow Chart indicates a potential buying opportunity. The chart, which compares price to historical trends, suggests Bitcoin might be mimicking its 2020 post-halving behavior.

The 2020 trend saw Bitcoin enter a “buy” zone followed by a significant price increase. While some investors are selling based on on-chain metrics, the chart suggests this could be a good entry point before a potential upswing.

Bitcoin Price Poised for Another Rise

Bitcoin surpassed the $70,000 resistance level and is currently holding support above $69,000. Technical indicators suggest another potential increase in the near term.

A break above a key bearish trend line and a climb above the 100 hourly simple moving average point towards bullish momentum. Resistance exists at $70,000 and $70,600, with a break above $71,200 potentially leading to further gains towards $73,200.

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ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.