Government of El Salvador bought Bitcoin worth $689,183 during the BTC price dump that began on February 24.
On Monday, the price of Bitcoin went down and on February 25 at 03:00 Moscow time it fell to its lowest value since January 2025 at $90,939. After that, a correction occurred, thanks to which kriptovalyuta rose in price to $92,530.
Bitcoin price drop from February 24 to 25
Salvadoran officials took advantage of the bearish trend to increase their holdings to 6,088 BTC, worth $559,4 million at the current rate. They purchased 7 BTC on February 25 at approximately 01:00 at a price of $94,169. Bitcoin is worth $91,777, so the deal inflicted an unrealized loss of 2,5% on the state, which, however, is more than covered by the still unrecorded profit of 98,4% in the amount of $147,7 million received since the start of investments in BTC in October 2021.
Members of the crypto community have seen the El Salvador government's purchase of Bitcoin as a bullish signal. However, cryptocurrency trader Pentoshi has a different view. According to him, a breakout of the support barrier at $92,000 will cause BTC price crash to $85,000. That is, Bitcoin will fall by another 7,6% if Pentoshi's forecast comes true.
Support and resistance levels on the chart made by Pentoshi
There are two important factors that support the upward trend. First, the Fear and Greed index is already got down to 25 and entered the horror zone. Secondly, the RSI index on the four-hour chart dropped to 29, which means the market is oversold. Given these facts, there are doubts that the bears will be able to consolidate in the range below $92,000 and build on their success.
