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Bitcoin (BTC) Becomes Legal Tender in El Salvador, Solana (SOL) Continues to Surge Higher

Bitcoin (BTC) Becomes Legal Tender in El Salvador, Solana (SOL) Continues to Surge Higher

Nick Cawley, Senior Strategist


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Bitcoin (BTC/USD), Solana (SOL/USD) Prices, Charts, and Analysis

  • Bitcoin breaks above resistance and eyes further gains.
  • Solana hits yet another all-time high.
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El Salvador is now the first country to recognize Bitcoin as legal tender, alongside the US dollar, with each citizen given $30 worth of Bitcoin in a special electronic wallet called Chivo. The new law states that merchants must accept payment in Bitcoin - along with USD - while bills can be paid via over 200 newly installed kiosks. The government also announced that it has bought 400 Bitcoin already and will be looking to buy more. To celebrate El Salvador’s ‘Bitcoin Day’ a host of users on a range of media channels, including Reddit and Twitter, are asking everyone to buy $30 worth of Bitcoin to show solidarity with the country.

Bitcoin hit a fresh multi-week high earlier in today’s session and broke above prior resistance off the 61.8% Fibonacci Retracement around $51,100 (not at $50.5k as previously mentioned). While Bitcoin is up nearly 500% so far this year, it has lagged other big name cryptocurrencies including Ethereum and Solana. The daily chart shows channel resistance is still in play but the steepness of the uptrend is not holding Bitcoin back as it continues to move higher. The next real level of technical resistance is now seen around $59,500 off the double top made in early-to-mid May this year.

Bitcoin (BTC/USD) Daily Price Chart September 7, 2021

One of this year’s best performing cryptocurrencies Solana continues to break higher, making double-digit percentage gains over the course of the last few days. At the start of 2021, Solana changed hands around the $1.95 level, with today’s print at $195 meaning the coin has appreciated 100 times in just over nine months. With the coin in unchartered territory, it is difficult to identify any new price target, especially as buyers seem to have total control of the market. Expect highly volatile price action ahead in such rarefied conditions.

Solana (SOL/USD) Daily Price Chart September 7, 2021

Chart via Trading View

The alt-coin market continues to grow and is now worth around $1.38 trillion due to price appreciation and new coin announcements. The chart below shows the market respecting the multi-month bullish channel with various attempts at a topside breakout being rejected. As with Bitcoin, this channel comes off a steep angle, leaving the all-time alt-coin market capitalization at just over $1.49 trillion within reach.

Cryptocurrency Market Minus Bitcoin September 7, 2021

Chart via Trading View

What is your view on Bitcoin and Solana – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.