Bitcoin price analysis: BTC/USD recovers monthly losses; Columbia luring crypto startups with tax breaks
|- Bitcoin bulls continue pushing the price higher.
- The Columbian president expressed support for cryptocurrency and blockchain.
Bitcoin bottomed out at $5,900 on August 14 and had been growing steadily ever since. The largest digital currency has settled at $7,270 by the time of writing after testing $7,337 hight during Monday trading. Looking technically, Bitcoin cleared a critical $7,000 hurdle and recovered monthly losses. BTC/USD is mostly unchanged since the start of the day and about 1% higher on a daily basis.
Meanwhile, Columbia followed Malta's lead and announced support for cryptocurrency and blockchain related companies.
The President of Colombia, Ivan Duque spoke about cryptocurrencies at the International Congress on Information and Communication Technologies and welcomed crypto startups to set their business under Colombian jurisdiction. He expressed hope that they will create new jobs in the country and promised them 5-year tax holidays in return. Ivan Duque believes that blockchain can stop corruption in the country and improve many aspects of the economy and governance.
Bitcoin's technical picture
BTC/USD has settled above both DMA50 and DMA100, creating a positive technical background for the short-term movements. However, the price has to break the sloping trendline from May 5 peak (currently at $7,660), before the bulls can claim a victory. This resistance area is followed by the confluence of DMA200 and 50% Fibo retracement at $7,860-$7,880 area.
On the downside, $7,000 remains pivotal. This psychological level is strengthened by DMA50 (currently at $7,050). Once it is broken, the sell-off may be extended to DMA200 ($6,893), where fresh buying interest is likely to appear.
BTC/USD, the daily chart
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