Bitcoin is eyeing $35,000 as its support level after dropping 7.4% in the later hours of January 19. 

Seemingly the correction was major resulted from an overheated derivatives market and uncertainty over whether BTC can recapture the $40,000 level. As per data from TradingView, the price of Bitcoin (BTC) fell as low as $33,400 prior to recovering to the $35,000 level. 

However, not all is lost for the top cryptocurrency. It is reported that news BlackRock, a multi-trillion-dollar asset manager, had submitted filings to the U.S. Securities Exchange Commission that mention the possibility of using Bitcoin derivatives and other assets as part of its investment scheme. 

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BTC/USDT 4-hour chart. Source: TradingView

Filbfilb, the Decentrader analyst, noted Bitcoin could be "trapped in consolidation between $30,000 and $38,000," as a couple of buy orders currently were "stacked between $30,000 and $33,000."

As per filbfilb's analysis: 

"Demand in the low $30s was tested today and has since bounced with Coinbase leading the price on the drop. The market is fearful in the demand zone as shown by funding."

The analyst continued to note that a further drop is not likely to happen and a longer consolidation is more possibly. Filbfilb also said that new Tether (USDT) output had recently been on hold but new money was released on January 20 after a request from iFinex Inc for a 30-day extension to produce trial documents for the New York Attorney General. 

undefinedDaily cryptocurrency market performance. Source: Coin360

Traditional markets respond to President Biden's inauguration

The traditional markets experienced a surge in optimism on January 20 when U.S. swore in Joseph R. Biden as the 46th President. 

The S&P 500, NASDAQ, and Dow all finished the trading day off in the green, increasing 1.39%, 2.31%, and 0.83% respectively. The S&P 500 and NASDAQ also hit new all-time highs amid the course of the trading day. 

BTC/USD daily chart. Source: Coin360

Although major cryptocurrencies are posting losses, Polkadot (DOT) resumed its uptrend via rallying 5.04%. The only other top 30 cryptocurrency that posted notable gains is VeChain (VET), which is up 11.47%. 

Hedera Hashgraph (HBAR) has also made an outstanding performance, increasing 44% overnight and currently trading around $0.0984. REN also surged today, gaining 15.94% over the past 24 hours. 

At present, the overall cryptocurrency market cap stays at $995.5 billion and Bitcoin's dominance rate is 64.8%.