Bitcoin price seeks support near $35,000 as DeFi tokens rise

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DeFi tokens rose as Bitcoin price struggled to hold USD 35,000 for support.

Bitcoin price is finding delicate support at USD 35,000 after falling 7.4% in the final hours of January 19.

According to Cointelegraph contributor Joseph Young, the correction was mainly the result of an overheated derivatives market and uncertainty over whether BTC can return to the USD 40,000 level. Data from Cointelegraph Markets and TradingView shows that the Bitcoin (BTC) price fell as low as USD 33,400 before recovering to the USD 35,000 level.

Bitcoin whales are betting that USD 40,000 is not the end and that the bull run is only just beginning

However, all is not lost for the market’s leading cryptocurrency, as BlackRock, the world’s largest investment management firm, sent filings to the US Securities and Exchange Commission that mention the possibility of using Bitcoin derivatives and other assets as part of its investment scheme.
4-hour chart of the BTC/USDT pair. Source: TradingView

According to Decentrader analyst Filbfilb, Bitcoin could be „stuck in consolidation between USD 30,000 and USD 38,000,“ with a lot of buy orders currently „stacked between USD 30,000 and USD 33,000.“

According to Filbfilb’s analysis:

„Demand at the USD 30,000 low was tested today and has since bounced with Coinbase leading the price on the fall. The market is skittish in the demand zone as evidenced by the funding.“

Ether could reach USD 10,500, according to a strategist at Fundstrat Global Advisors.

The analyst went on to say that a deeper drop is not expected and that we are more likely to see a long consolidation phase. Filbfilb also noted that new Tether (USDT) issuance had recently been suspended, but new money was released on Jan. 20 following a request by iFinex Inc. for a 30-day extension to produce trial documents for the New York Attorney General.

Daily performance of the cryptocurrency market. Source: Coin360
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Traditional markets saw a surge in optimism on Jan. 20 as the United States swore in Joseph R. Biden as its 46th president.

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The S&P 500, NASDAQ and Dow closed the trading day in the green, up 1.39%, 2.31% and 0.83%, respectively. The S&P 500 and NASDAQ also reached new all-time highs during the course of today’s trading day.