Bitcoin Unable to Close Above $50K – August 31, 2021
Bitcoin has resumed an upward move to retest the $50,000 overhead resistance. BTC’s price is trading at $49,464 at the time of writing. On the upside, a breakout at the current support will clear the resistance at $49,500 and $50,000. Buyers will have to sustain the price above $50,000 to signal the resumption of the uptrend. If buyers are successful above the overhead resistance, the bullish momentum will extend to the $55,000 high. Conversely, if Bitcoin faces rejection at the recent high, the crypto will fall and becomes range-bound below the overhead resistance.
El Salvador’s Assembly Endorses $150M Bitcoin Trust
The Legislative Assembly of El Salvador has passed legislation creating a $150-million Bitcoin Trust. The purpose of this fund is to support the development of crypto infrastructure and services across the country. In the Legislative Assembly, the bill was passed with 64 officials voting in favor, while 14 opposing the trust’s creation. The trust is intended to assist the conversion of Bitcoin into United States dollars and support the rollout of vital technological infrastructure enabling widespread adoption of crypto assets. The government has set aside $23.3 million toward rolling out crypto ATMs and $30 million to incentivize the use of the state-backed “Chivo” wallet. President Nayib Bukele has earlier announced that the government would air $30 worth of Bitcoin to every Salvadoran adult who downloads the Chivo wallet. Presently, El Salvador’s current population is 6.5 million but has not allocated enough Bitcoin to go around.
Nevertheless, the BTC price is rising on the upside to retest the overhead resistance but unable to close above $50K. Yesterday, the BTC price was rejected as it fell to the $48,074 support. Today, the bulls will have to break above the $50,000 high or it will risk a sharp downward fall. A breakout above the overhead resistance and subsequent bullish momentum will signal the resumption of uptrend.
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