El Salvador buys 420 more Bitcoin, President Bukele claims investment already profitable

El Salvador's increasing Bitcoin accumulation
“El Salvador increasing its Bitcoin accumulation” Image by Mohamed Hassan via Stockvault.

Key Takeaways:

  • El Salvador’s President Bukele announced the country bought another 420 Bitcoins in the recent dip.
  • Meanwhile, BTC prices continue to move away from its latest ATH.

NEW DELHI (CoinChapter.com) — President and self-proclaimed ‘Emperor of El Salvador,’ Nayib Bukele continues to take advantage of Bitcoin’s volatility as the country added 420 additional Bitcoin to its coffers.

President Bukele announced on Oct 28 via his Twitter handle, saying he bought the dip. Bitcoin prices have been in a downtrend since reaching a new record high on Oct 20. Interesting to note is the number of Bitcoins that the controversial leader bought- 420.

The movement to legalize cannabis smoking helped popularize meme number 420, as protestors gathered to smoke marijuana in public places at exactly 4:20 pm. Tesla CEO Elon Musk has often used 420 and 69 (a number with sexual annotations). However, it seems President Bukele took a leaf out of Mr. Musk’s book.

On Sept 7, El Salvador launched its Bitcoin adoption experiment, which hit a few hiccups on the very first step. However, between Sept and Oct, President Bukele has purchased BTC four times, bringing the total to 700 Bitcoins before his latest shopping spree.

Also Read: Tesla and Bitcoin are bubbles, says top Wall Street analyst as TSLA and BTC soars to record highs.

The country’s portfolio had racked up over $11 million in unrealized losses, as per data from Disruptiva magazine. However, with Bitcoin prices enjoying a massive bull run as it began in October, El Salvador recuperated most of its losses. As BTC prices crossed $65,000, El Salvador ended with an unrealized profit upwards of $10 million.

At present, El Salvador holds 1,120 BTC, worth about $87.4 million. However, not everyone is happy with the security arrangements of the country’s Bitcoin reserves. Moreover, El Salvadorians renewed their protest against President Bukele’s regime and its adoption of Bitcoin, citing drastic fluctuation in BTC prices.

Bitcoin Price Chart

BTC prices went into a downtrend immediately after charting their new ATH on Oct 20. BTC fell nearly 6.6 percent from its ATH the very next day to reach a low of $62,598. Since then, Bitcoin has failed to climb above the $64,000 mark.

Also Read: Bitcoin analyst shifts $70K price target to $90K after BTC falls 12% in 6 days.

Bitcoin resistance level, which would be the bulls’ immediate target, is at $62,465. Furthermore, resistance at $64,000 is strong, capping any upside movement since Oct 21. If sustained buying pressure propels prices above both these resistances, prices would likely reach $65,417 before pulling back.

BTC price struggling to move above $64,000.
BTC price struggling to move above $64,000. Source: BTCUSD on Tradingview.com

On the other hand, Bitcoin has support at $58,095, near its 26-day EMA. Further support for BTC is available at $56,347. In case of sustained selling pressure, BTC would likely fall to $54,152 before prices start recovering. Meanwhile, Bitcoin is bullish across all time horizons, indicated by its 50-day and 200-day MA trendlines.

Additionally, MACD is giving bearish signals. The MACD histogram plots the difference between the MACD line (difference of 12-day and 26-day EMA) and its signal line (9-day EMA of MACD). If the difference is negative, the momentum for an asset is bearish.

MACD is bearish for Bitcoin
MACD is bearish for Bitcoin. Source: BTCUSD on Tradingview.com

Momentum started waning the day after BTC charted its latest ATH, turning negative within three days. In addition, the relative strength index for Bitcoin is neutral, with a value of 59.22.

At the time of writing, BTC was trading at $61,748, up 4.74% on the day.

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