Bitcoin Fails to Break $40K, but Bulls Continue to Lend Support at $35K
Hopes of bulls did not turn into reality yesterday as Bitcoin (BTC) failed to cross the resistance level of $40,000, sparking another round of sell-off. Data provided by Coingecko.com and Trading View indicates that the price of Bitcoin declined to a low of $34,368 before bouncing back above the psychological $35,000 level.
At the time of writing this article, Bitcoin was trading at $35,762, reflecting a gain of 7.3% in the last 24 hours.
Many believe that the optimism about the $1.90 trillion package planned by the President-elect Joe Biden was quickly used by the crypto market as an opportunity to buy the rumor and sell the news concerns have arisen about the practicality of the bill.
Bitcoin’s decline was also fueled by the European Central Bank President Christine Lagarde’s statement calling for global regulation of the crypto. She also blamed the numero uno crypto of aiding “money laundering activity.” Notably, yesterday, a financial advisor has suggested the UK government to issue a blanket ban on crypto transactions.
It is not just the hard stance taken by government officials that caused the decline of Bitcoin and cryptomarket as a whole. Major indicators signal rising selling pressure in general.
Even traditional markets were not spared. The Nasdaq and S&P 500 ended Friday’s trading session with a loss of 0.73% and 0.72%, respectively. The Dow, however, managed to end the trading session with a gain of 0.3%.
In commodity markets, gold and silver recorded a drop of 1.07% and 3.17%, respectively. Likewise, oil and 10-year US Treasury bonds also lost 2.93% and 3.59%.
In spite of a rise in selling pressure across the market, many altcoins demonstrated strength. Chainlink (LINK) recorded a gain of 17.2% in the last 24 hours to trade at $21.43. Cosmos (ATOM) rallied 0.4% to trade at $7.68. However, Ether (ETH) faced selling pressure, with the token trading at $1,158, reflecting a loss of 4.8% in the past 24 hours.
Overall, the market capitalization of cryptocurrency market is $1 trillion, with Bitcoin (BTC) commanding a market dominance rate of 68%.