Bitcoin adoption spreads as BTC tests $43k support

Key Takeaways:

  • Madeira and Prospera announced plans to Bitcoin as a legal tender.
  • Meanwhile, BTC tests support at $43,000.
Bitcoin adoption is spreading, with its adoption as legal tender in two new cities. Image from freepik and cryptologos
Bitcoin adoption is spreading, with its adoption as legal tender in two new cities. Image from freepik and cryptologos

NEW DELHI (CoinChapter.com) — Bitcoin adoption seems to be growing, as news coming out of the 2022 Bitcoin Conference Miami suggests.

Prospera, jurisdiction on the Roatán island off the northern coast of Honduras, and Madeira, an autonomous region in Portugal, announced the adoption of Bitcoin as a legal tender. The announcements came from the same stage where El Salvador made a similar announcement last Apr.

In Prospera, citizens would not have to pay capital gains taxes on Bitcoin. Additionally, the region will allow taxes and fees payment using the prime cryptocurrency. Joel Bomgar, Prospera’s president, and Samson Mow, former Chief Strategy Officer of Blockstream, made the announcement.

Prospera would also help other municipalities to float Bitcoin bonds to encourage foreign investments in the region.

In addition to Prospera, the president of the Regional Government of Madeira in Portugal, Miguel Albuquerque, announced that residents would be free from paying income taxes when buying or selling Bitcoin.

Also Read: Bitcoin uptrend underway: 3 reasons why.

Samson Mow also announced the starting of a new company, JAN3, that will focus on nation-state BTC adoption. Furthermore, the firm has signed a memorandum of understanding with El Salvador to develop digital infrastructure.

It’s a general MOU that says we’ll work together to build digital infrastructure for the country and for Bitcoin City. I just set up my company and I said ‘do you want to work together?’ and they said ‘sure.’

Samson Mow said

Mow’s firm would work alongside the El Salvador government to establish Bitcoin City.

Mexico Also Considering Adoption

Mexican senator Indira Kempis shared her intention to present a bill to make Bitcoin a legal tender in the country. Kempis explained the regulation would modify the Fintech and Monetary Law to make BTC a constitutional right for the country’s citizens.

According to Kempis, nearly 66 million people in Mexico do not have access to the banking system. As such, the senator believes Bitcoin could be a solution to the problem.

Kempis also mentioned a possible meeting with Mexican President Andres Manuel Lopez Obrador to discuss her proposal.

Meanwhile, Bitcoin prices are moving in an ascending channel as BTC tests support at $43,000. Crypto analyst Rekt Capital also highlighted the importance of $43,000 as support.

The analyst speculated that if BTC flips the support at $43,000, Bitcoin will return to the $38,000 to $43,000 range in which the token consolidated earlier this year.

Bitcoin Price Chart

Bitcoin prices charted a golden cross on Apr 6, when BTC’s 50-day moving average (yellow wave) moved above its 100-day MA (purple wave). The golden cross is a bullish technical pattern that forms when a short-term MA line crosses above a relatively long-term one.

Also Read: Good news! Bitcoin, S&P 500 correlation falls amid recession risks.

However, bulls failed to take cues from the golden cross as BTC continued to move laterally. After falling from $45,000, bulls struggle to keep BTC above $43,000. Bitcoin’s 50-day and 100-day MA lines form a support influence near $42,000.

Moreover, the ascending channel provides support near $40,400. Finally, Bitcoin has support near $39,200.

Bitcoin (BTCUSD) daily chart with ascending channel, golden cross, and MACD. Source: Tradingview.com
BTCUSD daily chart with ascending channel, golden cross, and MACD. Source: Tradingview.com

Meanwhile, momentum oscillator MACD continues to chart bearish bars for BTC after charting a bearish crossover on Apr 5. Moreover, bars on the MACD histogram are expanding, indicating the MACD line (difference of 12-day and 26-day EMA) is moving away from the MACD signal line (9-day EMA of MACD).

Expanding negative bars indicate strengthening bearish momentum for BTC.

Conversely, if bulls manage to reverse the current downtrend, BTC would likely flip immediate resistance from its 20-day MA (red wave) near $45,000 before moving to target resistance near $46,700. Finally, the digital asset’s 200-day MA (green wave) acts as resistance near $48,400.

At the time of writing, BTC was trading at $42,707, down 1.77% on the day.

close
Bitcoin, Bitcoin adoption spreads as BTC tests $43k support

Subscribe Today
for our Weekly Newsletter

Free Weekly Crypto News without the spam.

Related Articles

Our Partners

SwapCoin.com RapidCoin.com ChangeNOW.com Paybis.com