The suffocating sentiment of doom and gloom in the crypto sector moved towards hope after Bitcoin reached a price of $37.5k briefly. This took place at the same time the stock markets went on to stage a midday rally that recovered most of the losses from the 24th of January.
Even with the recovery on the 25th of January, most of the global markets have been in a constant state of flux, primarily due to the major uncertainty that looms over the plans of the US Federal Reserve to increase the rate of interest in the coming months, with the latest signal implying that the first interest hike would come in March.
Bitcoin Has Brought About An Inkling Of Hope In The Industry
According to data received from TradingView and Cointelegraph Markets Pro, it has been highlighted that Bitcoin bulls went on to reclaim a sum of $36,000 on the 25th of January while managing to claw their way through a price range of $37,500 before a closing-bell pullback in equities markets weighed on the price of BTC.
There have been several theories that the analysts have been pushing for which could explain the latest move of BTC and if it would start the sustainable rally or just a bull trap which would be destined to push the price back into the low 30ks.
The significance of the recent Bitcoin price bounce off of $34,000 was addressed by Whalemap, the on-chain data firm, which posted a chart that elucidated the bounce off of the whale trendline.
The data firm stated that BTC’s bounce was quite preferable on the daily- with $34,000 being quite a crucial position to hold. According to the chart that Whalemap posted, if the cryptocurrency is unable to hold on to a sum of $34k, the next support level would be near $25k.
The overall market cap for the entire cryptocurrency sector stands at around $1.667 trillion, with the dominance rate of Bitcoin- the largest cryptocurrency in the world- falling down to 42%.