Bitcoin [BTC] headed towards a $35k benchmark earlier today on Wednesday, boosted by historic news that El Salvador had made it a legal tender.
While some celebrated the choice by El Salvador’s parliament, traders remained edgy. As reported earlier, expectations involve a short-term return to $35k prior to a reversal and a deeper BTC price dip takes hold.
“Bitcoin printing a better low, expecting some more bounce today,” popular trader Crypto Ed outlined on Twitter.
“Not sure yet if the bottom is in, will update later today.
A starker warning had come from trader Crypto Cobra, who in the week repeated forecasts of a big write-down across crypto assets. This, he added, could cost tokens 20%, meaning that Bitcoin would target $25k.
Crypto Ed nonetheless revealed that a declining USD, that as recently as Monday was on the up, could yet create the conditions for a “miracle” growth spurt in Bitcoin.
“All we’d like for a bullish BTC,” he commented on the newest readings from the USD currency index [DXY].
“DXY breaking down here and it’ll happen.”
While on the other hand, Bitcoin’s renewed upward trajectory had a generally positive consequence for altcoins.
A look at the top 50 cryptocurrencies by market capitalization revealed gains typically reaching 3% on the day, with some price exceptions fluctuations.
Ethereum [ETH] was over $2,500, yet like Bitcoin, still over 5% lower versus its position every week ago.
The overall cryptocurrency market cap stood at slightly below $1.54 trillion, with Bitcoin’s dominance striking at 41.6%.