Crypto

BTC price further crushes resistance, nears $53K on El Salvador ‘Bitcoin Day’

Bitcoin (BTC) targeted $53,000 on Tuesday as fears of a fresh BTC price dip faded above crucial resistance.

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

”No going back” after El Salvador Bitcoin adoption

Data from Gist Vile Markets Pro and TradingView showed BTC/USD hitting new highs of $52,960 on Bitstamp overnight.

After a swift retest of the $51,000 level — the lower boundary of what was previously a large wall of selling pressure — Bitcoin bounced back with a vengeance, eclipsing bears and hitting its highest in almost four months.

Short sellers lost out big, with 24-hour liquidations nearing $500 million at the time of writing.

Among analysts, however, the talk was all about El Salvador, Tuesday marking its transition to a partial Bitcoin standard in a historic world first.

“El Salvador just bought 200 new coins. We now hold 400 BTC,” president Nayib Bukele confirmed on Twitter as the country’s accumulation officially began.

Bukele, who faced criticism from his citizens and international financial organizations over the move, added that the government would purchase “a lot more” in the short term.

He also called on mobile app stores to release El Salvador’s state Bitcoin wallet, Chivo, in time for “Bitcoin Day.”

“Bitcoin is now legal tender in El Salvador. Soon more countries will follow,” Samson Mow, chief strategy officer of Blockstream, meanwhile, commented in one of many responses predicting a domino effect thanks to El Salvador.

“There is no going back. You cannot put the genie back in the bottle.”

Market eagerly buys up miner coins

As Gist Vile reported, on-chain metrics and fundamentals appeared equally relentless this week as the recovery from the May miner rout continued unabated.

Related: BTC becomes legal tender in El Salvador: 5 things to watch in Bitcoin this week

Even miner profit-taking failed to dampen price action or short-term expectations, on-chain analytics firm Glassnode noting that the market had “clearly absorbed” the spare liquidity.

“This week, around 2,900 BTC have been spent from miner balances, equal to around $145M at a $50k BTC price,” it wrote in its latest weekly newsletter, “The Week On-chain.”

Miner positions increasing or decreasing by up to $5,000 in a given week is standard practice, it added, describing the latest activity as “reasonably expected behavior.”

Bitcoin miner net position change annotated chart. Source: Glassnode