El Salvador makes big Bitcoin plays as BTC crests new local highs

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The people of the tiny nation of El Salvador are making history today, designating September 7 forever to be the official “Bitcoin day” for a country that has made this cryptocurrency its national form of money.

 

William Suberg reports at Cointelegraph on how an initial purchase of 400 Bitcoin corresponds with El Salvador’s plan to cryptofy its fiat, and create a national wallet called Chivo for Bitcoin holdings.

 

Notwithstanding reservations by entities like the World Bank, El Salvador is ready to move ahead with its ambitious plan, in an age where many analysts and observers see institutional buy-in for Bitcoin stabilizing the financial value of cryptocurrency.

 

“Bitcoin is now legal tender in El Salvador,” said Samson Mow, chief strategy officer of Blockstream, as quoted in Suberg’s story. “Soon more countries will follow.”

 

This type of bullishness also seems to be reversing recent Bitcoin corrections in the short term – with BTC rearing above $53,000 after sinking to the neighborhood of $30,000 earlier this year. All-time highs are around $60,000, so it wouldn’t take much more for Bitcoin to start heading toward the clouds again and marking new territory in per-coin value.

 

“The next support could be near the $52,250 level,” writes Aayush Jindal at NewsBTC today. “There is also a key bullish trend line forming with support near $52,250 on the hourly chart of the BTC/USD pair. The main support is now forming near the $52,000 level. It is close to the 50% Fib retracement level of the recent increase from the $51,183 swing low to $52,800 high. If there is a downside break below the $52,000 support zone, the price could extend its decline. In the stated case, the price could test the $50,850 support or the 100 hourly SMA.”

 

How far does BTC have to fly? Stay tuned.

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