Bitcoin fluctuation made the cryptocurrency market as a whole suffer as the bitcoin price fell today to the level of $ 35,000 before bouncing up and stabilizing at the level of $ 36,000.
The drop coincides with the USA President "Biden" unveiling $ 1.9 trillion to stimulate the USA economy.
What made analysts confused, as Biden unveiling of the stimulus plan was expected to contribute to the rise of Bitcoin and not vice versa.
Bitcoin fluctuated and fell below 35,000 $ today January 15th, as renewed strength in the USA dollar increased pressure on the largest cryptocurrency.
Bitcoin rebounded from the support at 34,300 $ and is currently trading at 36,300 $ at the time of writing this article.
Will Bitcoin remain volatile and Bitcoin return to the 30,000 $ level?
Data from the source showed that the BTC / USD trading pair reached its lowest level in more than 24 hours on Friday, as the bitcoin price fell to 34,000 $ which is considered a support area for Bitcoin.
The previous day, Bitcoin saw the 40,000 $ area recover for the shortest moment before falling back into the range in the corridor that formed at the start of the week.
The recent decline reinforced the assumption that Bitcoin will continue down this corridor, which contains the 30,000 $ level as support and 40,000 $ as the rough ceiling.
Analyst Michael Van de Pope explained in a series of tweets what this means:
The Bitcoin correction is very healthy for the market after the massive move to the 41,500 $ level.
Bitcoin is approaching the rebound zone here as its rally was rejected by the crucial resistance around 40,000 $.
So a correction is useful for taking a breath and releasing Bitcoin.
The new contraction in the bitcoin price came with the rise in the US dollar index (DXY) on the back of President-elect Joe Biden 1.9 trillion dollars coronavirus stimulus plan.
Despite the seriousness of the dollar supply expansion, the markets appeared to react positively to the plotted plans, leading to a higher DXY on the Bitcoin account, which shows an inverse correlation with it every time.
The technical outlook for Bitcoin and its upcoming expected movement varies between a downtrend and a rise, but the majority indicate that the Bitcoin currency BTC is in a bull market.
0 Comments: