Bitcoin fell by more than 8% during trading last Tuesday, after a long period of growth and analysts expected the price to reach $100,000
Bitcoin suffered a decline but the support remains
Bitcoin tumbled more than 8% during trading last Tuesday, after a long period of growth when some analysts expected the most popular cryptocurrency of the year to reach $100,000, the uptrend stopped abruptly as the coin collapsed and lost towards 20%.
As a result, Bitcoin dropped rapidly from the $53,000 level to $43,000, and despite the fact that the heavy selling halted even before the price broke the $40,000 support level and the currency bounced back, market participants revised their short-term outlook for it.
After enhanced volatility and a massive price crash that has not been observed since July when China began a regulatory crackdown on miners, bitcoin has stabilized above the $46,000 level, as most Crypto Alternatives are also early signs of recovery, with staggering double-digit price increases.
The benchmark cryptocurrency has lost about 1 % over the past seven days, and since the beginning of the year so far the coin has gained around 60%.
El Salvador officially accepts Bitcoin as legal tender
It was supposed to be called Bitcoin Day when the asset officially became a legal currency in El Salvador, but it brought nothing but pain for it, as in a few hours the price of the leading currency fell by more than $10,000 in a few hours last Tuesday.
This culminated in a drop below $43,000, and the entire market plummeted after the Bitcoin crash, which resulted in a loss of around $330 billion that was completely wiped out of the market capitalization, but since then, the leading cryptocurrency has managed to recover some of its losses and calmed down to trade above the price of $46,000, its market capitalization is still well below $900 billion, having moved an inch away from touching $1 trillion two days ago.
Moreover, the dominance of the most popular coin in the market also slipped back to 41% as most altcoins rebounded well in one day.
Overreliance from El Salvador
El Salvador made history earlier this week when it became the first country to officially accept Bitcoin as legal tender, and while society rejoiced at the importance of the news, many say the move has been exaggerated, as the dollar continues to dominate.
Three months after the surprise announcement that the country would adopt bitcoin, El Salvador officially entered the history books on September 7 because it made the digital currency legal within its borders.
Being the first country to do so, it has urged prominent members of the crypto community to highlight the importance of the move, and some have even argued that other countries should follow suit.
However, the move, which has been met with increasing criticism by organizations like the International Monetary Fund, has also expanded outside the cryptocurrency ecosystem, and famous names continue to influence whether or not El Salvador took the right move.
A professional technical and economic analyst in global financial markets since 2004. He holds a Master’s in Business Administration from the American University in Cairo. He works as an economic writer and technical analyst for many international financial companies. He writes daily economic and technical analyzes for many Arabic and English websites specialized in the field of stock exchanges and financial markets.
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