Bitcoin Price Up 9.17%- Is Now A Good Time To Buy Bitcoin?
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The price of Bitcoin, the largest cryptocurrency by value, jumped by 9.17% over the weekend, according to the 24hr trading chart. Could it be the right time to buy Bitcoin?
Although Bitcoin’s price remains far below its April peak of around $65,000 per Bitcoin, it is up.
BTC is trading in the mid $30,000 range to climbing near $40,000. If you’re an investor looking to buy Bitcoin, this might be the right time.
Bitcoin Just North Of The $41k Mark
At press time, Bitcoin is trading at $39,64. It has fallen off from an intra-day high of $40,106.37, with more uptrend projected by the 20-day moving average (MA) support.
However, Bitcoin price is below the 200-day MA indicator showing that investors are still unsure if they should buy Bitcoin for the long haul.
On the trading chart, its relative strength index (RSI) puts it at 51.80, indicating investors want to buy Bitcoin.
The positive directional movement index (DMI) is at 17.046, signaling that the market is bullish on Bitcoin. The 9-day moving average convergence and divergence (MACD) is also bullish showing a 1458.29 trendline.
This might be the perfect time to buy Bitcoin with the coming bull run.
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El Salvador and Elon Musk Comments
The recent Bitcoin rally has once again been attributed to billionaire Elon Musk’s tweets. The Tesla boss confirmed his company’s plans to resume Bitcoin payments eventually.
The Tesla Inc Chief Executive Officer had disclosed on Sunday that Bitcoin payments for cash would return once miners switch to renewable energy. This announcement saw the price of Bitcoin rise 2% from the $35,959 resistance level to $39,364.
Musk had been a major promoter of cryptocurrencies before turning critical of Bitcoin when he suspended Tesla plans to take Bitcoin payment for cars due to high energy consumption concerns.
Latin American country El Salvador’s bold move to accept Bitcoin as legal tender has also been a major factor towards Bitcoin’s increasing price level.
President Nayib Bukele first announced the move in a recorded message played at a Bitcoin conference in Miami on Saturday before proposing it at the parliament. The country’s lawmakers voted the bill in.
Bukele embraced the cryptocurrency to promote financial inclusion, investment, and economic development in the country. This milestone will enable Bitcoin to serve as a second legal tender beside the US dollars.
This move has changed the dynamics around governments’ attitudes towards cryptocurrencies.
It has also revealed how well digital assets have captivated the attention of governments around the world.
Many countries are now piloting their own virtual tokens, otherwise known as central bank digital currencies (CBDCs).
Miners Crack Down In China Could Favour El Salvador’s Mining Plans
China recently outlawed crypto mining in Yunnan and Qinghai provinces following earlier sanctions in its Xinjiang and Inner Mongolia regions. This could play out in favor of Bitcoin being mined with renewables.
Crypto mining with clean energy was in place before the ban by China. Although the exact figure of Bitcoin mining done through this process is unknown.
A Cambridge University report states that about 39% of crypto mining is done with clean energy. While another report by the Bitcoin Mining Network pegs the figure at 74.1%.
Barely days after the crackdown on coal-powered Chinese miners, El Salvador’s president instructed the country’s geothermal electrical company, LaGeo, to leverage the geothermal energy from the country’s volcanoes for mining crypto.
Suppose LaGeo was to help turn the country’s unused geothermal energy towards mining Bitcoin. In that case, El Salvador could quickly become a hotspot for mining Bitcoin globally.
Apart from being a friendly location for Bitcoin from the regulatory perspective, El Salvador could also prove helpful from the environmental viewpoint.
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