Altcoins rally while Bitcoin bulls are hamstrung by resistance at $ 34K

Bitcoin (BTC) fell short of below $ 30,000 as top cryptocurrency finds a new wave of support, including a $ 10 million ‘buy the dip’ moment from MicroStrategy.

Data from Cointelegraph Markets and TradingView show that strong inflows helped lift BTC 4.92% to a daily peak at $ 33,866.

As the Biden administration hopes to pass massive stimulus packages to help get the U.S. economy going again, talks about Bitcoin becoming a reserve are starting to emerge again.

While Bitcoin’s recent volatility has some analysts saying BTC is a recurring asset rather than a hedge, the price that recent moves have caught in the eye of retail investors who have shown renewed interest in cryptocurrencies in general.

Daily cryptocurrency market performance. Source: Coin360

Even the International Settlement Bank has recognized that digital money could be useful and the organization has outlined plans to introduce a range of central bank digital currency trials this year.

Now that Bitcoin’s fear index has flipped from “Extreme Greed” to “Fear,” some investors seem to be taking Warren Buffet’s advice of “buying when there is blood on the streets”.

Institutional investors are wary of future regulation

According to Chad Steinglass, head of trading at CrossTower, Bitcoin’s correction may have been triggered initially by critical comments fromU.S. Treasury Secretary Janet Yellen.

Prior to Yellen’s comments, Bitcoin was experiencing “post-correction consolidation” and was “spanning between $ 34,000 and $ 38,000” with traders “waiting to see which side of the range would be challenged or broken. ”

BTC / USDT 4 hour chart. Source: TradingView

Steinglass further reveals that Bitcoin’s next steps will be determined by the actions of institutional investors. He said:

“$ 31,000 was a pocket of strong support, so at least not everyone is selling. It will have to wait to see if that wall stays, or if organizations continue to build up. If they do, the trend is likely to re-establish itself and continue. If they move to the outskirts awaiting more regulatory guidance, then their lack of purchase flow will be severely felt. ”

Altcoins bounce back

Many of the top altcoins also improved nicely from this week’s correction. Polkadot (DOT) rose 7.09% to its daily peak at $ 18, while Chainlink (LINK) posted two-digit earnings and above $ 22.31. Tezos (XTZ) has also seen a surge in interest that boosted the altcoin by 15% to $ 3.36.

The overall cap of the cryptocurrency market is now $ 949.8 billion and Bitcoin’s dominance rate is 64.4%.