On January 12, the Bitcoin (BTC) price fell slightly as the price tried to go back into the $ 37,000 range, but at the moment of this time the price increase raises the price to $ 32,000.
Although the bearish price action has shaken new investors unfamiliar with the volatility of Bitcoin, the recent drop of 28% does not even put it on the list of the top 5 worst BTC withdrawals in history. In fact, today’s 20% rebound means one of Bitcoin’s biggest one-day rebounds ever.
Despite Bitcoin’s rapid 20% bounce, many analysts have warned them that the top cryptocurrency is not out of the woods yet, due to a high futures financing rate and the growing strength of the US Dollar Index (DXY ).
Long-term and institutional investors seem uncomfortable by the correction and probably believe it is nothing more than a short-term downturn.
Analysts at Goldman Sachs have 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.
Stocks seek support
While Bitcoin and altcoins have a healthy setback, traditional markets have continued to face pressure due to the possibility of ongoing 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 and some analysts have even warned that a strong dollar is bad for the Bitcoin price.
The major indices were under pressure all day and ended mixed at the close clock, with the S&P 500 and Dow up 0.04% and 0.19% respectively, while the NASDAQ closed 0.08%.
Altcoins show strength as Bitcoin tries to find a new trading range
It now looks like Bitcoin is entering a new range where $ 30,000 is support and the $ 35,000 level can act as resistance. As this happens, certain altcoins have moved higher and traders are taking advantage of the stability of BTC by switching to altcoins.
The Ether (ETH) price pushed back above $ 1,000 and at the time the altcoin was written for $ 1,050. Stellar (XLM) also recovered well on Tuesday when the digital asset rose 22.16%.
The DeFi sector also continued to show strength as Maker’s management token (MKR) rose more than 31%. Synthetix (SNX) and AAVE also scored 23% as both reached a new high for the year.
The total market capitalization for cryptocurrency now stands at $ 924.5 billion and Bitcoin’s dominance rate is 68.4%.