Bitcoin is now officially legal tender in a sovereign state for the first time, but can it exit its bearish price phase?

Bitcoin (cryptoprimacy.com/bitcoin-price”>BTC) headed toward $35,000 on Wednesday, boosted by historic news that El Salvador had made it legal tender. 

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

Trader “not sure” whether Bitcoin has bottomed

Data from cryptoprimacy.com/”>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.

While some cryptoprimacy.com/news/el-salvador-president-bitcoin-law-will-be-approved-tonight” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/cryptoprimacy.com/news/el-salvador-president-bitcoin-law-will-be-approved-tonight/amp”>celebrated the decision by El Salvador’s parliament, traders remained edgy. As Cointelegraph cryptoprimacy.com/news/bitcoin-price-nears-30k-as-estimates-reveal-19k-support-floor” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/cryptoprimacy.com/news/bitcoin-price-nears-30k-as-estimates-reveal-19k-support-floor/amp”>reported, expectations call for a short-term return to $35,000 before a reversal and deeper BTC price dip takes hold.

 “Bitcoin printing a higher low, expecting some more bounce today,” popular trader Crypto Ed summarized on Twitter.

“Not sure yet if bottom is in, will update later today.”

A starker warning had come from trader Crypto Cobra, who this week cryptoprimacy.com/news/bitcoin-will-dip-to-25k-if-this-trader-s-20-crypto-crash-forecast-comes-true” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/cryptoprimacy.com/news/bitcoin-will-dip-to-25k-if-this-trader-s-20-crypto-crash-forecast-comes-true/amp”>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 cryptoprimacy.com/news/btc-price-doesn-t-care-about-el-salvador-5-things-to-watch-in-bitcoin-this-week” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/cryptoprimacy.com/news/btc-price-doesn-t-care-about-el-salvador-5-things-to-watch-in-bitcoin-this-week/amp”>on the up, could yet create the conditions for a “miracle” growth spurt in Bitcoin.

“All we need for a bullish BTC,” he commented on the latest readings from the U.S. dollar currency index (DXY). 

“DXY breaking down here and it will happen.”

U.S. dollar currency index 1-hour candle chart. Source: TradingView

Altcoins enjoy respite from losses

Meanwhile, Bitcoin’s 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 (cryptoprimacy.com/ethereum-price-index” data-amp=”https://cointelegraph-com.cdn.ampproject.org/c/s/cryptoprimacy.com/ethereum-price-index”>ETH) was above $2,500, yet like Bitcoin, still over 5% lower versus its position a week ago. 

The overall crypto market cap stood at just under $1.54 trillion, with Bitcoin’s dominance at 41.6%.