Bitcoin Slumps as El Salvador Buys the Dip
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Bitcoin (BTC) bulls and President of El Salvador Nayib Bukele took to Twitter on Friday to tell his over 3.4 million followers that his country had purchased 410 additional BTC for $15 million amid the recent market crash. Bukele noted that the country bought BTC at $36,585, adding that “Some guys are selling really cheap.”
In the same tweet, the president asserted that he did not miss the dip, after all, noting: “Nope, I was wrong, didn’t miss it,” replying to a tweet from January 14 that said, “think I might have missed the dip this time.”
On a broader scale, Bitcoin began its descent in November 2021 from the $67K top. The benchmark cryptocurrency continued on that trajectory and began 2022 around $47K but fell further below $41K on January 8. BTC then crept back over the following days but suffered a devastating crash. Currently, Bitcoin trades at $34,680
El Salvador instituted its Bitcoin law, which made BTC a legal tender in the country in September last year. Ever since, the nation has accumulated more coins, acquiring whale status.
In September 2021, El Salvador purchased over 700 BTC. The country bought an additional 420 BTC in October, 100 BTC in November, and 171 BTC in December. With its latest 410 BTC purchase, El Salvador now holds a total of 1,801 BTC.
Key Bitcoin Levels to Watch — January 23
Bears continue to exercise absolute control of the crypto market in 2022 as BTC slumps to the $34K low, its lowest point since July 25, 2021. In what was its most bearish daily candle in over four months, the benchmark cryptocurrency appears to have lost hopes of any bullish price action in January.
Although bears appear to have lost steam at the $34K base, it is unlikely that this base of the Bear cycle, which is now confirmed. That said, many analysts believe that we could revisit the $30K region, although I believe there is a slim chance that could occur. Nonetheless, the only clear directional bias, at the moment, is down.
Meanwhile, my resistance levels are at $36,000, $37,000, and $37,500, and my key support levels are at $34,000, $33,000, and $32,000.
Total Market Capitalization: $1.63 trillion
Bitcoin Market Capitalization: $668.3 billion
Bitcoin Dominance: 41%
Market Rank: #1
