Monday , January 17 2022

Bitcoin price exceeds USD 37,000, a signal that bulls are trying to recover USD 40,000


The price of Bitcoin (BTC) broke the resistance of USD 35,000 and seems to be entering a new range that would cause the price to trade between USD 38,000 and USD 40,000. Today’s recovery from the USD 34,000 level also seems to have invalidated what appeared to be a bearish head and shoulder pattern formed in the 4-hour time frame.

4-hour chart of the BTC / USDT pair. source: TradingView

Claiming the USD 36,000 level as support may also help crush the children’s narrative that the price of Bitcoin was entering a new bear market after the 26.5% drop this week subtracted $ 200 billion from the total digital currency market capitalization.

Despite this fall, financial advisors continue to develop a more positive outlook towards the major digital currency, as well as with the growing challenging sector.

Daily performance of digital currency market. source: Currency360

The recent announcement from Office of the Comptroller of Currency (OCC) which allows banks to transact and guard stablecoins it is being interpreted as a green light for the entire digital currency sector.

Proof of this came today, as custodial provider Anchorage has just obtained the first digital bank letter from the OCC. According to the outgoing head of the OCC, Brian Brooks, the future of finance on the Internet is inevitable.

Challenge and altcoins show strength

Current market conditions continue to reflect the trend of previous cycles, in which the price of Bitcoin is sharply corrected and then consolidated after experiencing a period of parabolic growth.

During these consolidation phases, traders tend to move their funds to altcoins, the increase in volume and the rise of several altcoins today reinforces this theory.

Daily chart of the pair BTC / €. source: Currency360

While Bitcoin spent the first few hours of the day trading between USD 32,000 and USD 35,000, Ether (ETH) rose to higher levels, gaining 3.96% to trade at $ 1,120 at the time of writing.

In the meantime, Polkadot (DOT) was the main currency of the day, with a rise of 36.89% trading near USD 11.30. His sister chain Kusama (KSM) also saw its price rise, as it increased 21.25% to trade at USD 77.59.

The overall capitalization of the digital currency market is now USD 983.5 billion and the Bitcoin dominance rate is 68.7%.

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