By Samuel Indyk
Investing.com – The price of Bitcoin was relatively steady on Wednesday morning after a flash crash on Tuesday saw the price drop almost 20% to $43,000, its lowest level since 7th August.
El Salvador Adoption
Some analysts were citing the “glitched” rollout by El Salvador in adopting Bitcoin as legal tender for the move yesterday. There were initial bugs impacting the new digital wallet in the country but those appeared to be resolved throughout the day.
El Salvador’s president, Nayib Bukele, was vocal on Twitter (NYSE:TWTR) throughout the day, announcing that the country was “buying the dip” when the price fell. Bukele added that El Salvador now holds 550 Bitcoin.
Total Market Cap
Other cryptocurrencies also succumbed to the selling pressure with Ethereum dropping towards its 50-day moving average around $3,000 before finding support and bouncing to its current level near $3,370.
Cardano, which was one of the best performing major cryptocurrencies in August, also saw a significant drop, falling as low as $2.03 after recently hitting a high above $3.09.
The total market capitalisation of all cryptocurrencies briefly fell below $2 trillion amid the flash crash but has since returned above that level.
Where to next for Bitcoin?
Bitcoin currently resides around the 200-day moving average near $46,000 after breaking below that level during yesterday’s price plunge.
A move below there opens the door to the 50-day moving average at around $44,400. The level has acted as support on Wednesday morning.
However, if the price steadies and further losses are stalled, some analysts have suggested Bitcoin could resume its path higher.
“Bitcoin’s fundamentals remain intact, as prices iron out a new trading range between the $46,000 and $53,000 levels,” said OANDA Senior Market Analyst Edward Moya.