Forging bitcoin from the fires! El Salvador plans to build the world’s first “green” Bitcoin City producing its own energy and money
- El Salvador Plans Bitcoin City!
- Bitcoin/USD – Black Friday Sale?
- Ethereum/USD – “No Man’s Land”
Bitcoin City: Tap-In the Volcano
On November 20th, 2021, President Nayib Bukele announced his intentions of building “Bitcoin City” in eastern El Salvador. The initial funding used to cover the costs will be covered by Bitcoin – backed bonds, which may be issued in less than two months. President Bukele plans for the entire city to be powered by local geothermal energy.
The president appeared in person to make the announcement at the end of a week-long Bitcoin Conference in El Salvador and said that the city would rely on geothermal energy from a volcano near the Gulf of Fonseca to provide energy for both the city and bitcoin mining.
Bukele also said that the city would be tax-free except for VAT (value-added tax). Half of the money raised through VAT would be used to pay off the initial costs of building the city and the other half would be used to fund public services. Bitcoin City will be a full-blown metropolis with residential areas, commercial areas, restaurants, and an airport. The city will be laid out in a circle like a coin and the center of the circle will have a huge bitcoin symbol that will be visible from overhead.
Bukele hopes to attract new residents and foreign investment into the city. The city will have no income, property, capital gains, or payroll taxes.
Related Video: El Salvador Update
Bitcoin/USD – Black Friday Sale?
BTC Daily Chart
BTC Weekly Chart
Bitcoin lost its weekly support at $59k and fell to a low of $55.4k before recovering to its current price of about $56.7k. There is a small level of daily support at $55.8k, but if the $59k level is not reclaimed then I am personally looking at either the $53k or the $50k level to hold as support. To add in a bit of bullish hopium, there is a possibility that last week’s candle was the dip below support and this week’s candle could be the “fake out” candle but we will have to wait for this week’s candle-close to see what transpires.
Bitcoin Bull Scenario
Bitcoin first reclaims the weekly support $59k (now resistance) and then continues to push up.
Bitcoin Bear Scenario
Bitcoin loses the daily support level of $55.8k, and then we look for the $50k -$53k level to hold.
Ethereum/USD – “No Man’s Land”
ETH Daily Chart
ETH Weekly Chart
Ethereum has shown a bit more strength than Bitcoin this week, but it is still being held back by Bitcoin’s decreasing price. Last week I mentioned that we should look for $4k as support for ETH/USD if prices were to drop and that level is exactly where we found support. Ethereum is currently in “no man’s land” at $4176 with price in the middle of support and resistance. The better trading opportunity would be to wait for a test of the daily support below at $4k or a flip of the daily resistance above at $4.3k.
Ethereum Bull Scenario
Ethereum maintains the $4k level and then reclaims the daily $4.3k level.
Ethereum Bear Scenario
Ethereum loses the $4k level and the next level that I would anticipate as support would be the $3.6k level.