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Bitcoin is now officially legal tender in a sovereign state for the first time, but can it exit its bearish price phase?
Bitcoin (BTC) headed toward $35,000 on Wednesday, boosted by historic news that El Salvador had made it legal tender.Â
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Trader ânot sureâ whether Bitcoin has bottomed
Data from Cointelegraph Markets Pro and TradingView showed a swift uptick in BTC/USD on Wednesday as Bitcoin saw its first adoption move by an official state.
The #BitcoinLaw has been approved by a supermajority in the Salvadoran Congress.62 out of 84 votes!History! #Btc
â Nayib Bukele (@nayibbukele) June 9, 2021
While some celebrated the decision by El Salvadorâs parliament, traders remained edgy. As Cointelegraph reported, expectations call for a short-term return to $35,000 before a reversal and deeper BTC price dip takes hold.
 âBitcoin printing a higher low, expecting some more bounce today,â popular trader Crypto Ed summarized on Twitter.
âNot sure yet if bottom is in, will update later today.â
A starker warning had come from trader Crypto Cobra, who this week repeated forecasts of a significant write-down across cryptocurrency. This, he said, could cost tokens 20%, meaning that Bitcoin would target $25,000.
Crypto Ed nonetheless added that a declining United States dollar, which as recently as Monday was on the up, could yet create the conditions for a âmiracleâ growth spurt in Bitcoin.
âAll we need for a bullish BTC,â he commented on the latest readings from the U.S. dollar currency index (DXY).Â
âDXY breaking down here and it will happen.â
U.S. dollar currency index 1-hour candle chart. Source: TradingView
Altcoins enjoy respite from losses
Meanwhile, Bitcoinâs renewed upward trajectory had a generally positive knock-on effect for altcoins.
A look at the top 50 cryptocurrencies by market capitalization showed gains typically reaching 3% on the day, with some exceptions up or down.
Ether (ETH) was above $2,500, yet like Bitcoin, still over 5% lower versus its position a week ago.Â
The overall crypto market cap stood at just under $1.54 trillion, with Bitcoinâs dominance at 41.6%.
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