- Bitcoin consolidates near $46,00 after a strong weekend rally.
- The BTC's price chart signals at the formation of a 'golden cross.'
- Bitcoin adoption also grows stronger after Rio de Janeiro begins taking real estate taxes in BTC.
MANALI (CoinChapter.com) — Bitcoin (BTC) prices registered their highest weekly close on Sunday, as BTC looks to consolidate above $46,000.
The prime crypto jumped nearly 16%, moving from the weekly low of $40,516 (on Mar 21) to reach the weekly high of $46,950 on Sunday. Moreover, the jump also helped BTC flip resistance from its 21-week exponential moving average (blue wave).
Popular crypto trader and analyst Rekt Capital also noted the uptrend.
Bitcoin ‘golden’ moment
Bitcoin prices gained 5.23% on Mar 27, as BTC moved to challenge $47,000 but failed. Sunday also saw the prime crypto’s first close above $45,000 since Jan 4 earlier this year. Moreover, BTC prices also reached $47,000 for the first time in nearly 11 weeks on Mar 28.
The uptrend would also get additional bullish tailwinds from a potential golden cross forming between BTC’s 20-day Exponential moving average (red wave) and 100-day EMA (purple wave). A golden cross is a bullish technical signal that forms when a short-term MA line moves above a relatively long one.
Traders and analysts interpret the pattern as an indicator of a definitive uptrend in the market.
BTC prices would likely flip resistance near $47,900 before moving to challenge resistance near $49,000. Afterward, a further upside movement could see Bitcoin prices target resistance near $50,000 before corrections pull back prices.
However, the recent uptrend has also put Bitcoin’s relative strength index dangerously close to overbought levels, with the RSI clocking 69.189 on the daily charts. An overbought RSI often forecasts a bearish trend reversal for an asset.
Hence, traders who rely on RSI levels would likely start selling, and BTC’s long upper wick on Mar 28’s daily candle suggests the same. If bears take hold of prices, BTC could fall to support near $45,850. A sustained sell-off could see Bitcoin move to support from its 200-day EMA (green wave) at $44,600.
Finally, BTC has support from its 100-day EMA (purple wave) near $43,500
Real Estate Taxes
Meanwhile, Rio de Janeiro, one of Brazil’s largest cities, has announced it will start taking BTC payments for its ‘Imposto sobre a propriedade predial e territorial urbana (IPTU),’ or the Urban Building and Land Tax. Chicão Bulhões, the Secretary of Economic Development, said the laws will come into effect from 2023
The initiative makes Rio the first city in Brazil to accept tax payments via cryptocurrencies. In addition, the city will partner with companies specializing in converting crypto assets to Reais. As a result, the city hall would not lose revenue due to BTC’s volatility.
Our effort here is to make it clear that in the city of Rio we have official initiatives that recognize this market. Now those who invest in cryptocurrency and live in the city of Rio will be able to spend this asset here paying official tax in the city of Rio. And we’re going to move forward quicklyMayor Eduardo Paes said
The city will also form a Municipal Committee for Crypto investments, responsible for investing resources in crypto assets such as BTC, under the rules and regulations governing the use of public money.
Supporting the cause, Binance CEO Changpeng Zhao shared plans to open an office in Rio. Furthermore, Zhao explained how he advised Rio’s mayor to accept taxes in cryptocurrencies like Bitcoin, promising that Binance will open a branch in Rio if the mayor keeps his promise.
‘He’s done his part. We are working on ours,’ the Binance CEO said.
At the time of writing, BTC was trading at $47,067, up 0.43% on the day.