Bitcoin Retracing from $45k as BTC Upside Momentum Fizzles

Pietro Poretti of the City of Lugano, Switzerland, has announced plans to upgrade Bitcoin and USDT to the same level as fiat, allowing cryptocurrencies to be used to buy goods and services.

As per a livestream on Thursday alongside Michele Foletti—the City’s Mayor, and Paolo Ardoino—the CTO of Tether—the world’s largest stablecoin by market cap, added that they will roll out the red carpet for BTC businesses and enthusiasts.

Bitcoin and Crypto-Friendly City

To make the migration as smooth as possible, the Crypto city will have a business-friendly environment and layout the perfect conditions for them to thrive. This is part of the city’s Plan B program meant to create an avenue in the heart of the city to the heartbeat of Bitcoin and blockchain startups.

The plan will also involve creating two investment funds. The first will see the allocation of $3.26 million to bolster the adoption of cryptocurrencies, including Bitcoin. Meanwhile, the second will be to form yet another pool of funds of up to $108.6 million to assist Bitcoin and blockchain startups wishing to migrate to the city and set up businesses.

Following El Salvador’s Steps

The revelation follows the decision by Nayib Bukele of El Salvador to make BTC legal tender. Since then, reports suggest that its economy has improved, rising double digits when most countries are trying to shake off the effects of the COVID-19 pandemic buoyed by increasing tourism and investments, mostly from supportive crypto and Bitcoin communities.

ICYMI: After passing #Bitcoin Legal Tender, El Salvador has exploded to double digit GDP growth for the first time in its history.

— Dennis Porter (@Dennis_Porter_) March 3, 2022

Bitcoin Price Analysis

The BTC price is under pressure, dropping roughly 10 percent from recent highs at the time of writing. The inability of bulls to build on gains registered early this week calls into question the strength of bulls and whether the recovery on February 28 was reactionary and an unsupported rush for capital preservation.

Even so, since BTCUSDT is still within a bullish breakout pattern above $40k with decent trading volumes, traders may ramp up on dips targeting $45k in the short term.

On the other hand, patient traders could wait for clear breakouts either above $45k or $40k before aligning with the emerging trend. If buyers have the upper hand, a snapback to trend from spot rates could easily see BTC glide to $50k.

Technical charts courtesy of Trading View

Disclaimer: Opinions expressed are not investment advice. Do your research.

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