Cryptos are rallying after El Salvador adopted Bitcoin as a legal currency in a historic vote yesterday evening – – then said it could run on volcano power.
BTC had gained 12.2 per cent in the 24 hours to 10.50am AEST, trading at US$37,165, while Ethereum was changing hands at US$2,587, up 4.6 per cent.
All but four of the top 100 coins had gained ground in the past 24 hours, with Bitcoin Gold up the most, by 58 per cent. Kusama was the second-best, trading up 28.4 per cent.
LEO Token and Theta Fuel, yesterday’s top gainer, were both down around five per cent.
Bitcoin Diamond, the No. 117 crypto, was up 34.4 per cent.
For #Bitcoin, the primary question is whether it holds the $35,300 area for support or not.
If that happens, I’m assuming a test around $38,500 is likely.
If not, then I’ll want to see a higher low around $33,500 to hold.
More consolidation then. pic.twitter.com/FJvFcbeOJy
— Michaël van de Poppe (@CryptoMichNL) June 9, 2021
El Salvador President Nayib Bukele, who spearheaded the country’s quick vote on Bitcoin adoption, followed that up by announcing that El Salvador would use geothermal energy from volcanos to mine Bitcoin.
Our engineers just informed me that they dug a new well, that will provide approximately 95MW of 100% clean, 0 emissions geothermal energy from our volcanos
Starting to design a full #Bitcoin mining hub around it.
What you see coming out of the well is pure water vapor
— Nayib Bukele
(@nayibbukele) June 9, 2021
Their dollars are backed by guns, our bitcoins are backed by volcanoes.
We are not the same.
— AngeloƉOGE (@AngeloBTC) June 9, 2021
Did anyone have #Bitcoin will be saved from a perfect storm of @elonmusk‘s shit-coining, the 17th China crypto ban, a technical analysis Death Cross, and a total price collapse by mining with geothermal energy from volcanoes in El Salvador” on their 2021 Bingo Card?
— Marc Woodward (@marcwoodward) June 9, 2021
‘Death cross’ all but unavoidable
Despite the pump, there was still danger lurking on the horizon.
Unless BTC stages an incredible rally in the next few days, it appears likely the original cryptocurrency will suffer a “death cross” moment soon, perhaps early next week. It’s a bearish signal that occurs when the 50-day moving average crosses under the 200-day moving average.
A death cross usually — but not always — indicates further downside. Many traders have warned that if Bitcoin falls under US$30,000, it would likely plunge all the way to US$20,000, the top of the 2017 bull run.
There’s also a couple of other catalysts on the horizon for Bitcoin in the next week, including the US Securities and Exchange Commission’s long-awaited decision on VanEck’s Bitcoin ETF, due by June 17 (US time). Approval would likely be massive for BTC, but it’s far from guaranteed.
The SEC could also push back a ruling again, but must give VanEck a decision by the fourth quarter.
El Salvador’s adoption of Bitcoin has also spurred interest in other Latin American nations, with some politicians announcing they would introduce similar bills.
Voy a promover y proponer ante la Cámara de Diputados un marco legal para las criptomonedas en México #btc
— Eduardo Murat Hinojosa (@eduardomurat) June 8, 2021
The post Cryptos rally on El Salvador adoption, volcano-powered BTC … as ‘death cross’, Bitcoin ETF decision loom appeared first on Stockhead.
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