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Bitcoin hits $35K after Biden reveals infrastructure deal, Paraguay proposes BTC bill

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Joe Biden pushed Bitcoin towards $ 35,000. As President Joe Biden’s $ 953 billion bipartisan infrastructure deal added optimism to the continued economic recovery, amid the dollar weakening.

Altcoins also followed Bitcoin. So, Ethereum (ETH) again rose above the psychologically important level of $ 2,000. Also, growth was shown by Tron (TRX) and Celo, which grew by 26% and 28%, respectively.

Growth of traditional markets

In addition to the cryptocurrency market, traditional markets also showed growth.

The NASDAQ and S&P 500 have set new records after reports that US President Joe Biden has struck an agreement on an infrastructure investment plan with a bipartisan group of senators. The volume of the package will be about $ 1 trillion over the next five years.

The NASDAQ Composite Index climbed to 14,414.46 points, the S&P 500 Index rose to 4272.4 points.

Experts note that the market has enthusiastically embraced the prospect of reaching an agreement on an infrastructure deal.

In addition, the growth of the market facilitated by the data on unemployment for the past week. Which strengthened confidence in the stable recovery of the labor market. The number of applications for unemployment benefits in the United States for the week ended June 19 fell to 411 thousand on a seasonally adjusted basis, the Labor Department said. However, this turned out to be higher than analysts’ forecast of 380 thousand applications.

The Bitcoin (BTC) price also rose amid news that lawmakers in Paraguay are planning to submit a bill to make BTC legal tender, circulating through Twitter.

Thus, Paraguay could become the next country after El Salvador to recognize Bitcoin as legal tender.

Shortly after the unconfirmed news tweeted, Bitcoin’s price surged to $ 35,289 (up 4.1%) before retreating slightly below a key short-term resistance level. The corresponding bill will be presented in the country’s parliament on July 14, said Congressman Carlitos Rejala.

Bitcoin price collides with obstacles

As we can see, against the backdrop of positive news, Bitcoin was able to rise above the $ 35,000 resistance zone. But could not rise above the 100-hour simple moving average.

It is now facing obstacles in the $ 33,000 – $ 34,000 region and the 100-hour simple moving average. A high of about $ 35,000 was formed, and now the price is correcting growth.

Experts believe that if Bitcoin fails to overcome the $35,000 resistance or trendline resistance, it may continue to move downward. Immediate support for the fall is near the $ 31,800 level.

The next important support is near the $ 31,200 level. A break below $ 31,200 could open the door for another fall towards the $ 30,000 zone in the coming sessions.

It should be noted, though, that traders’ sentiment improved slightly.

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