How Bitcoin’s lower support retest was bought up by bulls

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Bitcoin’s lower support retest was bought by bulls, preparing BTC for another $40,000 push.

Calls for Bitcoin (BTC) to rally over $40,000 were dashed as the top cryptocurrency hit a wall of resistance that sparked a sell-off in early trading hours.

Data from Cointelegraph Markets and TradingView show the price of BTC fell as low as $34,368 before rebounding to its current price of $37,300.

Daily cryptocurrency market performance. Source: Coin360

It is possible that the excitement surrounding the announcement of a $1.9 trillion stimulus bill from the incoming administration of Biden quickly turned into a rumor-buying, selling news as questions begin to emerge about the feasibility of parts of the bill.

BTC/USDT 4-hour chart. Source: TradingView

Bitcoin’s dip also comes after renewed criticism from global regulators as the President of the European Central Bank, Christine Lagarde, recently stated that the top cryptocurrency is “totally reprehensible money laundering activity.” This was followed by an announcement on January 15 that the UK’s financial advisor has applied to the UK. Government and Parliament for the prohibition of cryptocurrency transactions.

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Traditional markets feel the pressure

Tough words from government officials were not the only reason for the downturn in the cryptocurrency market, as the global financial market scan shows signs of increasing pressure.

S&P 500 and NASDAQ faced pressure from the opening bell and ended the day at 0.72 percent and 0.73 percent respectively. The Dow managed to push back against the bears to close the day by 0.3 percent.

A broader survey of global markets shows that gold and silver closed 1.07 percent and 3.17 percent, while oil and the 10-year US closed. Treasury bonds have lost 2.93 percent and 3.59 percent.

Altcoins continue to push higher

BTC/USD daily chart. Source: Coin360

Despite increased sales pressure across the market, several altcoins showed strength. Chainlink (LINK) experienced a surge overnight and is currently trading at $20.50, up 13.9 percent in the 24-hour period. Cosmos (ATOM) earned 21.62 percent and traded at $7.81.

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Meanwhile, Ether (ETH) was under the same pressure as the broader Bitcoin. At the time of writing the top-altcoin is down 4.8 percent and trades $1,172.

The overall market cap for cryptocurrency now stands at $1 trillion and Bitcoin’s dominance rate is 68 percent.

 

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