Bitcoin targets $38k as Arizona Senator introduces bill to make BTC legal tender

Key Takeaways:

• Bitcoin jumped 9% to since Jan 27 to move into above $38,000.
• Arizona Senator presented a bill to make Bitcoin a legal tender in the state.

NEW DELHI (CoinChapter.com) — Bitcoin (BTC) prices jumped 18% from the current week’s low of $32,983 to move above the $38,000 price level as it entered the weekend. The world’s largest cryptocurrency charted its third consecutive green candle on Saturday.

BTC price nearly reached $38,925 in the current week, but the bears initiated a massive profit-booking on Bitcoin’s relief rally, pulling back prices. In contrast, Jan 28 saw bulls aggressively buy the dip to push BTC price register an intraday gain of 1.61%.

If bulls manage to extend the rally as the Bitcoin price action enters Sunday, BTC will face immediate resistance from the descending trendline resistance near the $39,000 price level. Moreover, the key resistance level from the 26-day exponential Moving Average line near $40,500 remains unchallenged.

Also Read: SEC gives a nay to Fidelity spot Bitcoin ETF amid ongoing BTC market decline.

As such, Bitcoin’s rally lacks strong bullish tailwinds. Moreover, though buyers have held prices above $29,000-$30,000 support zone, it is unlikely BTC would launch a massive growth rally soon.

Additionally, the relative strength index returned to the neutral region after its foray into the oversold regions, clocking 38.08 on the daily charts.

Bitcoin’s MACD Returns To Bullish Regions

Meanwhile, trend-based momentum oscillator MACD returned to bullish regions on Jan 29 after charting a bullish crossover on the daily charts.

In detail, a bullish crossover occurs when the MACD line (difference between 12-day and 26-day EMA) moves above the MACD signal line (9-day EMA of MACD). The MACD histogram, which plots the difference between the MACD line and its signal line, highlights the crossover with a positive bar.

The MACD reversal comes after eight days of bearish MACD levels since Jan 20.

On the other hand, if bears’ selling pressure exceeds the bulls’ buying power, Bitcoin price would likely fall to immediate support at $37,000. Moreover, sustained profit-taking could likely push BTC’s price to $35,800.

Arizona To Become The Next El Salvador?

Republican State Senator Wendy Rogers introduced a bill that would make Bitcoin a legal tender in the U.S. state of Arizona. Bill no. SB 1341 aims to amend the list of accepted legal tender in the state to include Bitcoin.

Also Read: US Federal Reserve to end Quantitative Easing (QE) in March. Bitcoin (BTC) tanks.

If the bill passes, Arizona will accept BTC as a payment for debt repayment, public charges, taxes, etc.

However, the passage of the legislation is questionable, considering that the U.S. Constitution has no provision for individual states to create independent legal tender. In detail, the bill will have to pass Arizona’s state senate and house.

Next, Governor Doug Ducey would sign to make it a law. If the 48^th U.S. state approves the bill, it will set a precedent for other states.

Recently, Don Huffines, a Republican real estate developer and candidate for Texas’ Governor post, announced he would make BTC legal tender if elected. In addition, 2021 saw El Salvador become the first country to make Bitcoin a legal tender in its boundaries.

At the time of writing, BTC was trading at $38,243, up 1.19% on the day.