- El Salvador added 12 more Bitcoin to its holdings, now totaling 6,068 BTC
- BTC price volatility raises concerns of a potential drop to $90K.
- Analysts see key support at $97K, with potential rebounds later this month.**
El Salvador has increased its Bitcoin holdings again, purchasing 12 BTC in a single day. The country now holds a total of 6,068 BTC, currently valued at over $554 Million. However, Bitcoin price action suggests potential risks, with analysts eyeing a possible drop to $90,000.
El Salvador Keeps Buying BTC Despite IMF Deal
El Salvador’s latest Bitcoin purchase comes amid ongoing volatility in the crypto market. According to the country’s Bitcoin Office, the government acquired 11 BTC on Feb. 4 at an average price of $101,816 per coin. Later, it added 1 more BTC at $99,114. The country has stacked 21 BTC this week and 60 BTC over the past 30 days.
This comes after President Nayib Bukele agreed to certain restrictions on Bitcoin activities as part of a $1.4 Billion financing deal with the International Monetary Fund (IMF).
Under the agreement, El Salvador made private sector Bitcoin acceptance voluntary and reduced government involvement in the Chivo crypto wallet. However, these policy changes have not stopped the nation from accumulating more Bitcoin.
Bitcoin Price Risks $90K Drop Amid Volatility
BTC price action has been volatile, recently reclaiming the $100,000 level before dropping back to $98,000 following renewed trade war tensions between the U.S. and China.
Analysts are closely watching key support and resistance levels, with BTC facing potential downside risks.
Trader George highlighted that Bitcoin’s market structure suggests two possible scenarios. He noted that the price could hold within the $93,000–$95,000 range before rebounding. However, if support fails, a further drop to the $90,000 region could occur.
Similarly, analyst Mark Cullen pointed out that Bitcoin’s 38.2% Fibonacci retracement level at $98,000 could act as a shallow support zone.
However, he warned that BTC may need to shake out late long positions, which could push the price toward the “golden zone” at $95,000.
Will $97K Hold or is a $90K Crash Coming?
Bitcoin price needs to stay above $97,000 to avoid a deeper drop. Glassnode data points to key support at $97,500, $96,450, and $94,300, while resistance at $100,780 and $101,867 remains a hurdle for any short-term recovery.
Michael van de Poppe, founder of MN Capital, remains optimistic about Bitcoin’s long-term prospects, stating that if BTC maintains support above $93,000, new all-time highs could emerge in February.
Technical indicators suggest momentum is weakening. The Relative Strength Index (RSI) is at 43.58, indicating Bitcoin is losing strength but isn’t yet in oversold territory. Meanwhile, Bollinger Bands are tightening, signaling that a major price move is imminent.
With Bitcoin price hovering around $97,319, traders are closely watching whether BTC will rebound or continue slipping toward $90,000.
While El Salvador keeps stacking Bitcoin, the broader market remains cautious, waiting for the next decisive move.
Disclaimer
This article is for informational purposes only and provides no financial, investment, or other advice. The author or any people mentioned in this article are not responsible for any financial loss that may occur from investing in or trading. Please do your research before making any financial decisions.
