Bitcoin Bullish Buys New $35,000 Support Test as Altcoins Continue to Rise

The new test of a lower Bitcoin support was bought by the bullish side, preparing BTC for a renewed push towards USD 40.00.

The cries calling for Bitcoin (BTC) to rise above $40,000 were silenced when the main crypto currency hit a wall of resistance that caused a massive sale in the early hours of the morning.

That’s how institutional investors pushed the Bitcoin rally to $40,000

Data from Cointelegraph Markets and Crypto Bank show that the BTC price fell as low as USD 34,368 before recovering to its current price of USD 37,300.

Daily performance of the crypto-currency market.

The excitement surrounding the announcement of a $1.9 billion stimulus package by the incoming Joe Biden administration may have quickly turned into a „buy on the rumor, sell on the news“ event as questions begin to arise about the bill’s viability.

4 hour chart for BTC/USDT pair

Bitcoin’s downfall also comes after a new wave of criticism from global regulators, such as European Central Bank President Christine Lagarde, recently declaring that the main cryptomoney is „a totally reprehensible money-laundering activity. This was followed by an announcement on January 15 that a British financial advisor has called on the UK government and parliament to ban transactions in cryptomoney.

Traditional markets feel the pressure

The harsh words of government officials were not the only cause of the recession in the crypto-currency market, as an analysis of global financial markets shows signs of increasing pressure.

After Ethereum, „the next stop will be high-risk altcoins,“ says Bitcoin investor Raoul Pal

The S&P 500 and NASDAQ faced pressure from the opening to the closing of the day with a drop of 0.72% and 0.73% respectively. The Dow managed to keep the bearish momentum away to close the day up 0.3%.

A broader survey of global markets shows that gold and silver closed down 1.07% and 3.17%, while oil and the 10-year U.S. Treasury bond lost 2.93% and 3.59%.

Altcoins continue to rise

Daily chart of the BTC/USD pair.

Despite the increased sales pressure throughout the market, several altcoins showed a good performance. Chainlink (LINK) experienced an increase during the night and is currently trading at USD 20.50, a 13.9% increase in the last 24 hours. Cosmos (ATOM) gained 21.62% and is trading at USD 7.81.

Bitcoin pursues a new historical high while an analyst says that „smart money never stopped buying“.

Meanwhile, Ether (ETH) faced the same pressure as Bitcoin in general. At the time of writing, the largest altcoin has dropped 4.8% and is trading at USD 1,172.

The capitalization of the entire cryptcoin market is currently $1 trillion and the Bitcoin dominance rate is 68%.