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

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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 it back to the 32,000 mark. USD.

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 history. . In fact, today’s 20% rebound marked one of Bitcoin’s biggest one-day rebounds ever.

Daily performance of the cryptocurrency market. Source: Room360

Despite Bitcoin’s rapid 20% rebound, many analysts have expressed caution, warning that the major cryptocurrency is yet to come out of the woods due to a high funding rate in the futures market and the increasing strength of the US dollar index (DXY).

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Long-term and institutional investors seem insensitive to the correction and probably think of it as just 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 face pressure due to the possibility of continuing political unrest in the United States and concerns about the economic impact of new COVID-restrictions. 19.

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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 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. As this happens, some altcoins have gone up and traders are capitalizing on the stability of BTC by switching to altcoins.

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1 hour BTC / USDT chart. Source: TradingView

The price of Ether (ETH) has been pushed back above $ 1,000 and at the time of writing this article, altcoin is trading at $ 1,050. 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 gained 23% as both rallied to new highs for the year.

BTC / USD daily chart. Source: Room360

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