Bitcoin Takes Over Crypto Bears Today and Posts Gains As El Salvador Becomes First Country To Declare Cryptocurrency As Legal Tender

It’s generally a negative day for cryptocurrencies today with Dogecoin (DOGE) and Cardano (ADA) shedding almost 10%, while Ethereum (ETH) down over 5%, but Bitcoin (BTC) looks meticulously stable thanks to a truly historic event, which can ignite a chain reaction of smaller nations’ adoptions of cryptocurrencies as official payment media.

On Monday, El Salvador’s President Nayib Bukele said that the country purchased its first 400 coins and promised to buy “a lot more” Bitcoin to its coffers as he announced El Salvador to become the first nation to adopt Bitcoin as legal tender.

In June, El Salvador passed a law allowing El Salvador to become the first country to establish Bitcoin as legal tender alongside the existing U.S. dollar (a very unhappy situation for such a generally low income country since it doesn’t print its own currency). All entities in the country will now be obliged to accept Bitcoin as a payment method for goods and services, and Salvadorans will be able to use the cryptocurrency to pay taxes.

This was quite an illustrative case when short sellers were squeezed out once again. Short sellers lost out big with liquidations over $500 million within a 24-hour span. After a swift retest of the $51,000 level — the implied transitory resistance level – Bitcoin bounced back robustly, while hitting its highest in almost 4 months.

According to Cointelegraph, the level $51,000 was often referred to as “crucial” and the “final hurdle” – so now, Bitcoin has pierced it. The move was a long time coming. The volume of sellers above the range proved the bullish trend remains intact, so the chart that previously suffered a lack of momentum now started looking fully equipped to move forward.