The Bitcoin price is finding soft support at $ 35,000 after dropping 7.4% in the last hours of January 19.
According to Cointelegraph contributor Joseph Young, the correction was largely the result of an overheating derivatives market and uncertainty over whether BTC can recapture the $ 40,000 level. Data from Cointelegraph Markets and TradingView show that the price of Bitcoin (BTC) fell as low as $ 33,400 before improving to the $ 35,000 level.
Not all is lost for the highest cryptocurrency though, as news of BlackRock, a multi-million dollar asset manager, has filed for the US Securities Exchange Commission which talks about the potential use of Bitcoin derivatives and assets others as part of its investment plan.
According to a Decentrader filbfilb analyst, Bitcoin could be “held in consolidation between $ 30,000 and $ 38,000,” with many purchase orders currently “stacked between $ 30,000 and $ 33,000.”
According to filbfilb’s analysis:
“Demand was tested in the low $ 30s today and has since bounced with Coinbase leading the price on the drop. The market is scary in the demand zone as evidenced by funding. ”
The analyst went on to say that no further collapse is expected and a longer consolidation is more likely. Filbfilb also noted that a new Tether (USDT) output had recently been captured but new funds were released on January 20 following a request by iFinex Inc. for a 30-day extension to produce trial documents for the Attorney General of New York.
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The S&P 500, NASDAQ and Dow all finished trading day off at the green, up 1.39%, 2.31% and 0.83% respectively. The S&P 500 and NASDAQ always reached new highs during the trading day.
While the majority of cryptocurrencies post losses, Polkadot (DOT) resumed its uptrend by rallying 5.04%. The only other top 30 cryptocurrency that posted notable gains is VeChain (VET), which is up 11.47%.
Hedera Hashgraph (HBAR) has also exhibited standout performance, surging 44% overnight and is currently trading around $ 0.0984. REN started today as well, gaining 15.94% in the last 24 hours.
The overall cap of the cryptocurrency market is now $ 995.5 billion and Bitcoin’s dominance rate is 64.8%.