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Altcoins are moving higher while the Bitcoin price finds resistance near $ 35,000

On January 12, the Bitcoin (BTC) price rose slightly as the price tried to re-enter the $ 37,000 series, but at the time of writing, increased sales are pushing the price back towards the $ 32,000 mark.

While the bearish price action may have pushed newer investors out unfamiliar with Bitcoin’s sawmill volatility, the recent drop of 28% does not even resemble that on the list of the top five BTC setbacks in history. In fact, today’s 20% rebound marked one of Bitcoin’s biggest one-day rebounds ever.

Daily performance in the cryptocurrency market Source: Coin360

Despite Bitcoin̵

7;s rapid 20% decline, many analysts have warned and warned that the top cryptocurrency is not yet out of the woods due to a high funding rate in the futures market and the growing strength of the US Dollar Index (DXY).

Long-term and institutional investors seem untouched by the correction and probably think it is nothing more than a short-term withdrawal.

Analysts at Goldman Sachs suggested that recent developments are a sign that “the market is starting to mature” and that the sector has great potential for growth, as institutional involvement accounts for only 1% of the current market.

Shares seek support

While Bitcoin and altcoins experienced a healthy rebound, traditional markets continued to press due to the possibility of continued political unrest in the US and concerns about the economic effects of new COVID-19 restrictions.

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

The main indices were under pressure all day, ending mixed at the close, with the S&P 500 and Dow rising 0.04% and 0.19%, respectively, while the NASDAQ closed 0.08%.

Altcoins are showing strength as Bitcoin tries to find a new trading area

Bitcoin now appears to be entering a new range where $ 30,000 is support and the $ 35,000 level can act as resistance. As this happens, selected altcoins have moved higher, and traders are taking advantage of BTC’s stability by switching to altcoins.

BTC / USDT 1-hour chart. Source: TradingView

The Ether (ETH) price pushed back over $ 1,000 and at the time of writing, altcoin is trading at $ 1,050. Stellar (XLM) also recovered well on Tuesday as digital assets rose 22.16%.

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

BTC / USD daily chart. Source: Coin360

The total market value of cryptocurrency now stands at $ 924.5 billion, and Bitcoin’s dominance rate is 68.4%.