El Salvador Buys the Bitcoin Dip Amid Intense FUD-Induced Sell-Off

Updated:

As the crypto market continues to cave under the prevailing FUD pressure, El Salvador has bought the Bitcoin (BTC) dip again.

The Central American nation took advantage of the heightened sell-off to purchase 100 more BTCs amid panic over the new “Omicron” variant of the COVID-19 virus. President of El Salvador Nayib Bukele took to Twitter on Friday to announce that the country bought the dip, noting that: “100 extra coins acquired with a discount.”

Last Friday, a World Health Organization (WHO) classified the Omicron variant as deadlier and more transmissible than other variants. The hawkish comments triggered a massive sell-off in BTC, which fell from $59,195 on Thursday to $53,530 by noon on Friday. At press time, BTC trades at $54,300 as the selling pressure prevails.

El Salvador officially made Bitcoin a legal tender alongside the US dollar on September 7. At the time, the benchmark cryptocurrency traded around $46,000. Since then, the Central American nation has made consecutive BTC purchases, which has brought its total holdings to 1,220 BTC.

Meanwhile, Bukele announced plans to create the world’s first “Bitcoin City,” powered by a volcano and funded by BTC bonds, the first of its kind.

Key Bitcoin Levels to Watch — November 28

Following its FUD-induced fall, BTC has found some support at the $54,000 pivot base, as the market witnessed a bearish slowdown on Sunday. That said, the next course of action for the benchmark cryptocurrency remains shrouded in uncertainty.

BTCUSD – 4-Hour Chart on Gemini. Source: TradingView

Nonetheless, if BTC continues to prevent a bullish slide below the $54,000 line over the coming hours, we could see an increase in bullish traction towards the $57,000 – $58,000 soon.

Meanwhile, my resistance levels are at $55,000, $55,500, and $56,700, and my key support levels are at $54,000, $53,000, and $52,000.

Total Market Capitalization: $2.45 trillion

Bitcoin Market Capitalization: $1.02 trillion

Bitcoin Dominance: 42%

Market Rank: #1

 

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Azeez Mustapha

Azeez Mustapha is a trading professional, currency analyst, signals strategist, and funds manager with over ten years of experience within the financial field. As a blogger and finance author, he helps investors understand complex financial concepts, improve their investing skills, and learn how to manage their money.