Altcoins move higher while Bitcoin price finds resistance near $35,000

Altcoins move higher while Bitcoin price finds resistance near $35,000

On Jan. 12 Bitcoin (BTC) price rebounded slightly as the price attempted to re-enter the $37,000 range but at the time of writing increased selling is pushing the price back toward the $32,000 mark.

While the bearish price action may have shaken out newer investors who are unfamiliar with Bitcoin’s whipsaw volatility, the recent 28% drop doesnt even maike it on the list of the top-5 worst BTC pullbacks in history. In fact, today’s 20% rebound marked one of Bitcoin’s largest one-day rebounds ever.

Altcoins move higher while Bitcoin price finds resistance near $35,000
Daily cryptocurrency market performance. Source: Coin360

Despite Bitcoin’s swift 20% bounce, many analysts have voiced caution, warning that the top cryptocurrency is not out of the woods yet due to a high funding rate in the futures market and the growing strength of the U.S. dollar index (DXY).

Longer-term and institutional-level investors seem unmoved by the correction and likely believe that it is nothing more than a short-term pullback.

Analysts at Goldman Sachs suggested that the recent developments are a sign that “the market is beginning to become more mature,” and that the sector has great potential for growth due to the fact that institutional involvement only comprises 1% of the current market.

Stocks search for support

While Bitcoin and altcoins saw a healthy rebound, the traditional markets continued to face 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 strengthening dollar are putting pressure on global financial markets worldwide and some analysts have even cautioned that a strong dollar is bad for Bitcoin price.

The main indices were under pressure all day and ended mixed at the closing bell, with the S&P 500 and Dow slightly up 0.04% and 0.19% respectively while the NASDAQ closed down 0.08%

ltcoins show strength as Bitcoin attempts to find a new trading range

Bitcoin now appears to be entering a new range where $30,000 is support and the $35,000 level may act as resistance. As this occurs, select altcoins have moved higher and traders capitalize on BTC’s stability by shifting to altcoins.

Altcoins move higher while Bitcoin price finds resistance near $35,000
BTC/USDT 1-hour chart. Source: TradingView

Ether (ETH) price pushed back above $1,000 and at the time of writing the altcoin trades for $1,050. Stellar (XLM) also recovered well on Tuesday as the digital asset gained 22.16%.

The DeFi sector also continued to show strength as Maker’s governance token (MKR) rallied more than 31%. Synthetix (SNX) and AAVE also gained 23% as both rallied toward new highs for the year.

Altcoins move higher while Bitcoin price finds resistance near $35,000
BTC/USD daily chart. Source: Coin360

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

Title: Altcoins move higher while Bitcoin price finds resistance near $35,000
Sourced From: cointelegraph.com/news/altcoins-move-higher-while-bitcoin-price-finds-resistance-near-35-000
Published Date: Wed, 13 Jan 2021 03:44:04 +0000

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Clint Lewis

Clint Lewis –Business I am Clint Lewis I have finished my four-year college education in English writing and I hold a master’s degree in Business from Stanford University. Writing about business and finance is in great interest. I have great command overwriting due to my five-year experience which incorporates articles, web substances, and web journals. I generally love to play with work, in both my profession and education.  I additionally had teaching experience of 2 years at the eminent college to show business and specialized composition and presently, I am working as an educator and preparing writer and creator. I am unimaginably social, and I love to travel and investigate the world.

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