BTC Slumps 5% With The Pullback Continuing: Price Analysis

BTC slumps 5% with the pullback still continuing after days of announcements for a new ATH which cooled off in what seems to be an end of the historic bull run. Today, the currency suffered another 5% drop and the price hit $35,000 so let’s read more about it in today’s BTC news.

Observers noted a correction which was overdue at some point along and valued at $10,500 at the start of October when BTC started increasing until the end of the year with notable growths before New Year’s and Christmas when Bitcoin hit $42,000. The general consensus is that the market performance of Bitcoin was bolstered by a strong institutuional interest from other companies. Anthony Scaramucci’s SkyBridge launched his own BTC fund while Michael Saylor’s Microstrategy also invested more than a billion dollars in BTC which eventually prompted Morgan Stanley to also invest a 10% stake in the company to capitalize on the growing interest in BTC.

#Bitcoin is not a ponzi, fad, or bubble. It is a bank in cyberspace, run by incorruptible software, offering a store of value to billions of people that have no better option. https://t.co/ydhVNRukHp

— Michael Saylor (@saylor) January 16, 2021

The fate in the coin remains as Scaramucci took it to Twitter to declare that a 25% pullback doesn’t come as a surprise and we should also expect surges and pullbacks while Saylor stands by his purchase every day. In the meantime, Goldman Sachs and JPMorgan both sent out requests for information to explore digital assets custody. According to Assetdash, BTC is the tenth biggest asset by market cap as it blazed ahead of Warren Buffet’s company as well as MasterCard, JPMorgan, Visa, and more. The graphs could be falling but BTC’s future remains a topic of speculation.

As recently reported, Bitcoin’s bloody weekend continued with the dramatic price drop as the primary cryptocurrency dropped below $35,000 for the second time in 3 days. Remarkable gains for ADA were made and another one for Polkadot as altcoins are on the rise with Bitcoin’s dominance crashing to 66%. A few days after the Monday crash when BTC bottomed to about $30K, the cryptocurrency managed to recover most of the losses and tried to hit the $40,000 price level again. The technical indicators suggest that the next support levels could help when BTC starts crashing again like the ones set at $34,000 and $32,500 as well as $30,000 as BTC slumps 5% as of late.

Also, The main resistance on the upside is set at the $38,600 zone and the triangle upper trend line and it nears the 76.4% fib retracement level from the drop at $40,036 swing high to $34,319 low.