A "healthy correction" is increasingly likely, says analyst Michaël van de Poppe as sellers dig in below the $40,000 mark.
Bitcoin (BTC) climbed to fresh all-time highs on Jan. 7, coming within striking distance of $40,000.
BTC price reaches $37,800
Data from Cointelegraph Markets, Coin360 and TradingView showed Bitcoin getting yet another boost overnight on Wednesday as protestors stormed the Capitol in Washington D.C.
After
showing signs of continuing strength during trading the day before,
BTC/USD abruptly headed north, reaching a new peak of $37,800.
By
press time on Thursday, a subsequent retracement had sent the pair focus
on the $37,000 mark, with Bitcoin still within 10% of hitting $40,000.
According to the latest updates
for order books, significant resistance lay in wait at $38,000, with
more selling pressure beginning at $39,500. Support was less decisive
above $31,000.
“It’s amazing, an amazing year,” Cointelegraph Markets analyst Michaël van de Poppe summarized in his latest YouTube update.
He added that while the current price action was something to be celebrated, a “healthy correction” was now getting more likely.
“Would
that be bad? No, as the higher Bitcoin goes, the more money is into the
markets and the more money can flow towards the altcoins from this
perspective,” he continued.
Altcoins still steal the show
As Cointelegraph reported,
the end of December was characterized by more funds entering long-term
storage, with the remaining available supply subject to what Van de
Poppe and others term “FOMOing in” from less experienced buyers.
These
felt that they should seize the opportunity and buy Bitcoin at higher
levels, having had no interest in doing so while Bitcoin traded at
$10,000, he noted.
Across major altcoins, Ether (ETH) was up 2.3% on the day, hitting $1,180, while embattled XRP put in a surprise move to add 27%.
Stellar (XLM) meanwhile continued its march upwards, hitting $0.34 on the back of weekly returns that topped 170%.
Bitcoin’s market cap dominance stood at 68.5% on Thursday, down from 69.7% at the start of the week.
source link : https://cointelegraph.com/news/bitcoin-price-now-within-10-of-40-000-after-ranging-flips-to-new-highs
