Bitcoin Suffers Crash Below $60K as Nayib Bukele “Buys the Dip,” Again

Updated:

El Salvador President Nayib Bukele has taken advantage of the recent Bitcoin (BTC) dip again, as he purchases more coins amid an intense selloff.

President Bukele announced via Twitter that he bought 420 more BTC, a meme number associated with the marijuana community, another humorous gesture. While the Bukele did not publish TXID, the President claims that his purchase was already in profit.

Despite his authoritarian leadership tactic, Nayib Bukele has found favor in the eyes of the Bitcoin community and is probably the most loved President by this group. Prominent community members, like Anthony Pompliano or Michael Saylor, often reference the Salvadoran President and polls give him a +80% approval rating according to data from several surveys by reputable institutions, including CID Gallup, Francisco Gavidia University, Mitofsky, and La Prensa Grafica.

However, many Salvadorans are unhappy with the President’s BTC endeavors and adopting it as a legal tender, describing the Bitcoin Law as “not wise.” The speedy implementation of the law ignited intense anti-BTC protests around the country, and BTC plummeting by over 10% on the day the government officially announced its purchase only worsened matters.

Nonetheless, the country’s holding is now significantly “green” considering the current price. With the recent purchase, El Salvador holds a whopping 1,120 BTC.

Key Bitcoin Levels to Watch — October 28

Following a sharp rejection around the $63,700 area, BTC suffered a parabolic drop to the $58,100 low over the past 24 hours despite favorable (neutral) trading conditions. The $58,000 support prevented any further decline and has set the benchmark cryptocurrency back on course for $60,000, as BTC trades around the $59,000s this morning.

BTCUSD – 4-Hour Chart

While I expect a sustained recovery to $61,000 area at least over the coming hour and days, BTC has yet to free itself from bearish conditions, and a bearish consolidation is not out of the near-term picture.

Meanwhile, my resistance levels are at $60,000, $61,000, and $61,785, and my key support levels are at $58,000, $57,500, and $56,700.

Total Market Capitalization: $2.48 trillion

Bitcoin Market Capitalization: $1.11 trillion

Bitcoin Dominance: 44.9%

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.