The entire sector of cryptocurrency had quite a volatile week after Bitcoin managed to crash down to $33,000 on the 24th of January. However, after this drop of 9%, the cryptocurrency managed to recover fully within eight hours after the BTC price regained its earlier support of $36,000.
On the 26th of January, BTC managed to rally to a price of $38,960 but it was unable to sustain itself at that level and further corrected itself by 8.8% in the next eight hours. Now, if one were to factor in the recent tides and crests, BTC managed to get through a meager 1.6% over the last seven days.
Bitcoin About To Reclaim Its Price Resistance Back
Even with the noticeable swings in price, the aggregate futures contracts liquidations were quite considerably low. Most of the buyers had around $570 million futures terminated, while the shorts faced around $690 million. Most of the data has highlighted that the Bitcoin futures represent close to 41% of the entire $1.25 billion liquidations of the cryptocurrency. The total crypto market cap currency presents just a modest weekly increase of 1.6%, which is perfectly in line with the performance of BTC.
Most of the investors have been trying to get through the regulatory mews of this week where Ted Budd, the United States Congressman went on to submit an amendment that would scrub a bill provision allowing the entire US Treasury to unilaterally prohibit a large section of financial transactions with the input from the public.
If the bill gets passed in its current form, the America COMPETES Act of 2022 would definitely result in quite a significant blow to the entire cryptocurrency industry- Bitcoin included- as Jerry Brito, the executive director for Coin Center has stated.
If one were to consider that the aggregate market capitalization of the cryptocurrency market is down by around 22% in 2022, the market structure looks pretty fixed up for a massive recovery. Now, barring a major change in the basics, most of the Bitcoin bulls are readily beginning to feel comfortable adding positions below the range of $40,000.
