Altcoins Rise As Bitcoin Price Finds Resistance Near $ 35,000

On January 12, the price of Bitcoin (BTC) rebounded slightly as the price tried to break into the $ 37,000 range, but at the time of writing, the increase in sales is pushing the price back to the bottom line. $ 32,000.

While the bearish price action may have rattled new investors unfamiliar with Bitcoin’s whipsaw volatility, the recent 28% drop isn’t even on the list of the 5 worst BTC pullbacks in the world. ‘history. In fact, today’s 20% rebound marked one of Bitcoin’s biggest one-day bounces ever.

Despite Bitcoin’s rapid 20% rebound, many analysts have expressed caution, warning that the major cryptocurrency is not yet out of the woods due to a high funding rate in the long-term contract market. term and the increasing strength of the US dollar index (DXY).

Long-term and institutional investors do not appear to be upset by the correction and probably think that it is only a short-term pullback.

Goldman Sachs analysts have suggested that recent developments are a sign that “the market is starting to become more mature” and that the sector has great potential for growth due to the fact that institutional involvement only accounts for 1% of the market. current.

Stock research for support

While Bitcoin and altcoins have enjoyed a healthy rebound, traditional markets have continued to come under pressure due to the possibility of continued political unrest in the United States and concerns about the economic impact of new COVID-19 restrictions.

Signs of a stronger dollar are putting pressure on global financial markets around the world and some analysts have even warned that a strong dollar is bad for the price of Bitcoin.

The major indexes were under pressure all day and ended mixed at the closing bell, with the S&P 500 and the Dow edging up 0.04% and 0.19% respectively while the NASDAQ closed lower. 0.08%

Altcoins show strength as Bitcoin tries to find a new trading line

Bitcoin now appears to be entering a new range where $ 30,000 is supported and the $ 35,000 level can act as resistance. When this happens, some altcoins have risen and traders capitalize on the stability of BTC by switching to altcoins.

The price of Ether (ETH) is pushed back above $ 1000 and at the time of writing, altcoin is trading at $ 1050. Stellar (XLM) also recovered well on Tuesday, with digital assets gaining 22.16%.

The DeFi sector also continued to show its strength, with Maker’s Governance Token (MKR) advancing by over 31%. Synthetix (SNX) and AAVE also rose 23%, both reaching new highs for the year.

The overall cryptocurrency market cap now stands at $ 924.5 billion and Bitcoin’s dominance rate is 68.4%.