A ‘healthy correction’ might happen soon in the bitcoin market according to various analysts who say that sellers are digging in below the $40,000 level.
Bitcoin surged to new all-time highs on January 7 and it came within striking distance of the psychological $40,000 zone.
Data obtained from Coin360 and TradingView showed Bitcoin (BTC) getting yet another boost overnight on Wednesday. All that happened as protestors stormed the Capitol in Washington D.C. After the flagship crypto showed signs of continuously growing strength during trading the day before, BTC sharply headed north and peaked around $37,800.
At the time of writing, a subsequent retracement had sent the crypto focus on the $37,000 level where it is consolidating the overnight gains. The crypto is now within 10% of hitting $40,000.
Based on the latest updates for order books, massive resistance lay in wait at $38,000 with growing selling pressure starting at $39,500. Support is still less decisive above $31,000.
One analyst summarized in his most recent YouTube update:
“It’s amazing, an amazing year.”
The analyst also said that while the current price action was something worth lots of celebration. A healthy correction was now becoming more likely. He explained:
“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.”
Altcoins Still Gain More Strength
According to the previous reports, the end of December 2020 was dominated by more funds entering long-term storage. The remaining available supply is subject to “FOMOing in” from less experienced buyers. In notable cases, most of the traders felt that they needed to seize the promising opportunity and acquire BTC at higher levels yet they had no interest in the market while it traded at $10,000.
Across the major altcoin markets, Ether (ETH) is up by 8% in the day hitting $1,200, while the embattled XRP is up an unexpected 32% to hit $0.30.
In the meantime, Stellar (XLM) has continued with its march upwards, reaching $0.34 on the back of impressive weekly returns that topped 170%.
On January 7, Bitcoin’s market dominance stands at 68.5%, down from 69.7% at the beginning of the week.