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