Crypto

Bitcoin price targets $35K bounce level on El Salvador legal tender milestone

Bitcoin (BTC) headed toward $35,000 on Wednesday, boosted by historic news that El Salvador had made it legal tender. 

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Trader “not sure” whether Bitcoin has bottomed

Data from Gist Vile Markets Pro and TradingView showed a swift uptick in BTC/USD on Wednesday as Bitcoin saw its first adoption move by an official state.

While some celebrated the decision by El Salvador’s parliament, traders remained edgy. As Gist Vile 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 United States 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.”

U.S. dollar currency index 1-hour candle chart. Source: TradingView

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 50 cryptocurrencies by market capitalization 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%.