It looks like the bitcoin bulls are fighting hard to maintain the Bitcoin price at the $40k giving so much trader’s pressure to sell off altcoins to be partakers of the high profits.
Altcoins were increasing with the price of Bitcoin, but when the price of BTC dropped to lower support levels, the whole ball game changed.
When the price of Bitcoin rose above $40K on Jan 7th, there was a high selling pressure that made the price drop to $36,600. As is the trend in the crypto world, the price drop made investors rush to buy BTC at its dip, which pushed the price back high to $41 940 on Jan 8th.
The market is still positive as there is more institutional investor flow into the crypto space. According to Michael Sonnenshein, the CEO of Grayscale Investments, pension funds have decided to take the route of using Grayscale to invest in Bitcoin.
The performance of the price of gold may have a direct impact on the rise of cryptocurrencies. CNBC Mad Money host Jim Cramer believes that Bitcoin and digital assets’ narrative has improved with the current pressure on the price of gold.
As much as it is hard to predict how long Bitcoin will be bullish, it is evident that there is a rush from institutional and retail investors in buying the currency, pushing the price even higher with every dip.
With the many roadblocks projected on US lawmakers’ stimulus bill on Jan 7th, the is hard S&P 500, NASDAQ, and Dow.
From the index’s performance from the selling pressure, there was a recovery that made things easier. There were gains from the S&P 500, NASDAQ, and DOW at o.55%, 1.28%, and 0.18%respectively.
In 24 hours, Bitcoin has traded between $36,660 and $42,000, giving altcoins selling pressure. With the weekend, the selling pressure is even worse, showing the possibilities of further pullbacks in the market to move to a new trading range.
The price of altcoins may improve if the bitcoin price finds support or enters a consolidation phase. That means that intra-day traders are on the eye for the price of Bitcoin.
Most leading altcoins such as Ether, Polkadot, and Stellar Lumens both dropped in their value. Bitcoin’s dominance rate is at 70.5%, with the cryptocurrency market cap at $1.05 trillion.