Bitcoin (BTC) price broke through the $35,000 resistance and appears to be stepping into a new range that would see the price trade between $38,000 to $40,000. Today’s recovery from the $34,000 level also seems to have invalidated what appeared to be a bearish head and shoulder pattern forming on the 4-hour timeframe.
Recapturing the $36,000 level as support could also help pressure that Bitcoin price is entering a new bear market after a 26.5% drop this week slashing $200 billion from the cryptocurrency’s total market cap.
Despite this decline, financial advisors continue to develop a more positive view of the top cryptocurrencies as well as the growing DeFi sector.
The recent announcement from the Office of the Currency Supervisor (OCC) allowing banks to transact and hold stablecoins is being interpreted as a green light by the sector as a whole.
The proof comes today as custodial provider Anchorage has just been awarded the first digital bank charter by OCC. According to outgoing OCC head Brian Brooks, the future of online finance is inevitable.
DeFi and Altcoins Show Strength
The current market conditions continue to reflect the trend of the previous cycle where the Bitcoin price corrected sharply and then consolidated after experiencing a period parabolic growth.
During this consolidation phase, traders tend to shift funds to altcoins and the increased volume and today’s rally of a number of altcoins reinforces this theory.
Because Bitcoin spends the early part of the trading day between $32,000 and $35,000. Ether (ETH) pushed higher, gaining 3.96% to trade at $1,120 at the time of writing.
Meanwhile, Polkadot (DOT) is the breakout coin of the day, up 36.89% and trading near $11.30. His brother Kusama (KSM) also received a price hike as 21.25% rally traded at $77.59
The overall cryptocurrency market cap now stands at $983.5 billion and Bitcoin’s dominance rate is 68.7%.