Bitcoin is now officially legal tender in a sovereign state for the first time, but can it exit its bearish price phase?
Bitcoin (BTC) headed towards $35,000 on June 9, boosted by historic news that El Salvador had made it legal tender.
Trader “not sure” if Bitcoin has bottomed
Data from Cointelegraph Markets Pro and TradingView showed a swift uptick in BTC/USD on Wednesday as Bitcoin saw its first adoption move by an official state.
The #BitcoinLaw has been approved by a supermajority in the Salvadoran Congress.
62 out of 84 votes!
— Nayib Bukele (@nayibbukele) June 9, 2021
As reactions celebrated the decision by El Salvador’s parliament, traders remained edgy. As Cointelegraph reported, expectations call for a short-term return to $35,000 before a reversal and deeper BTC price dip takes hold.
“Bitcoin printing a higher low, expecting some more bounce today,” popular trader Crypto Ed summarized on Twitter.
“Not sure yet if bottom is in, will update later today.”
A starker warning had come from trader Crypto Cobra, who this week repeated forecasts of a significant write-down across cryptocurrency. This, he said, could cost tokens 20%, meaning that Bitcoin would target $25,000.
Crypto Ed nonetheless added that a declining U.S. dollar, which as recently as Monday was on the up, could yet create the conditions for a “miracle” growth spurt in Bitcoin.
“All we need for a bullish BTC,” he commented on the latest readings from the U.S. dollar currency index (DXY).
“DXY breaking down here and it will happen.”
Altcoins enjoy respite from losses
Meanwhile, Bitcoin’s renewed upward trajectory had a generally positive knock-on effect for altcoins.
A look at the top fifty cryptocurrencies by market cap showed gains typically reaching 3% on the day, with some exceptions up or down.
Ether (ETH) was above $2,500, yet like Bitcoin still over 5% lower versus its position a week ago.
The overall crypto market cap stood at just under $1.54 trillion, with Bitcoin’s dominance at 41.6%.