Bitcoin Price Rise To $ 37,850 Indicates Bulls Intend To Recover $ 40K

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The price of Bitcoin (BTC) has broken through the resistance of $ 35,000 and appears to be entering a new range which would see the price trade between $ 38,000 and $ 40,000. Today’s rally from the $ 34,000 level also appears to have invalidated what appeared to be a bearish head and shoulders pattern forming over the 4 hour period.

4 hour BTC / USDT chart. Source: TradingView

Recovering the $ 36,000 level as support may also help crush the infantile narrative that the price of Bitcoin was entering a new bear market after this week’s 26.5% drop reduced the total market cap by $ 200 billion. of cryptocurrency.

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Despite this plunge, financial advisers continue to develop a more positive view of the leading cryptocurrency as well as the growing DeFi industry.

Daily performance of the cryptocurrency market. Source: Room360

The recent announcement by the Office of the Comptroller of the Currency (OCC) allowing banks to transact and hold stablecoins is being interpreted as a green light by the industry as a whole.

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The proof is today when the depositary Anchorage has just been granted the first digital banking charter by the OCC. According to Brian Brooks, outgoing chief of OCC, the online future of finance is inevitable.

DeFi and altcoins show their strength

Current market conditions continue to mirror the trend of previous cycles where the price of Bitcoin corrects sharply and then consolidates after experiencing a period of parabolic growth.

During these phases of consolidation, traders tend to shift funds to altcoins and the increasing volume and current rallies of a number of altcoins reinforce this theory.

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BTC / USD daily chart. Source: Room360

As Bitcoin spent the start of the day trading between $ 32,000 and $ 35,000, Ether (ETH) pushed higher, gaining 3.96% to trade at $ 1,120 at the time of writing.

Meanwhile, Polkadot (DOT) was the coin of the day, up 36.89% and trading near $ 11.30. Its sister chain Kusama (KSM) also received a price increase going up 21.25% to trade at $ 77.59

The overall cryptocurrency market cap now stands at $ 983.5 billion and Bitcoin’s dominance rate is 68.7%.