Bitcoin rose 12% to $37,388 on Wednesday, June 9. In 43 hours, the price action recovered from $31,000 (+23.85%) to $38,491 as the media reported an important event in El Salvador. On June 5, El Salvador's President Nayib Bukele announced that the country plans to pass legislation that will make it the world’s first sovereign nation to adopt bitcoin as legal tender. At that time, there was only a muted reaction.
Then on June 9, El Salvador's parliament passed a law making bitcoin legal tender in the country, according to an article shared on the Twitter account of the Legislative Assembly. Bukele went on to say that state energy company LaGeo is in the process of developing a plan to bring bitcoin miners into the country. El Salvador is evolving into an offshore zone for crypto millionaires.
At the time of writing, Bitcoin was trading at $38,313 on Binance (+2.40%). If BTC closes the week around $37,000, a "hammer or pinbar" will form on the weekly TF. Rumors are swirling now that the price action will stall around $39k. The technical picture has noticeably improved after yesterday's trading session. To consolidate the result, the cryptocurrency will need to gain a foothold above $40k.