Bitcoin has held above $ 30K, posting a 5% gain at the start of the new business week and trading around $ 34K. The benchmark cryptocurrency does not make sudden movements. Large investors can take a break, waiting for new triggers. Moderate price dynamics is confirmed by technical indicators. The Greed and Fear Index for Bitcoin and the largest cryptocurrencies is in “greedy” mode, but so far in a moderate form. The RSI on the daily chart is also far from overbought. Thus, from the technical point of view, there are no obstacles to growth, but for now all participants can exercise increased caution.
Ethereum (ETH) is currently enjoying the largest growth among the leading cryptocurrencies. The main altcoin is growing by more than 8% per day and is trading above $ 1,400. If the coin manages to hold above the historic high or confidently continue to grow, we will see a new impetus for ETH and other top altcoins. The development of developers along the path of transition to the second version of the project, as well as the approaching launch of futures on CME in early February, have a very positive impact on the value of the coin.
Of course, the main event on the crypto market is the bitcoin correction. The coin broke not only the $ 32K support level, but also the $ 30K round level. After that, they began to buy the asset, however, confidence in the prospects from market participants will return only if Bitcoin turns to growth towards $ 40K. In the meantime, the situation is very precarious.
Over the year, bitcoin has risen in price by 5.75 times, from $7,300 on January 01, 2020 to $41.900 on January 08, 2021, so a correction by "some" 30% is, they say, not a reason for panic. In addition, a number of analysts note that this time the fall of bitcoin is not accompanied by an exit to fiat. Investors, fixing profits on the main cryptocurrency, do not leave the digital market, but open positions on more promising, in their opinion, altcoins. For example, on ethereum, the price of which has increased more than 11 times over the year. And if by the evening of January 22, the BTC/USD pair lost 22% relative to the maximum, then the decline in ETH/USD was less than 10%.
The bitcoin's quotes are in the region of $32,500. This is a fairly strong support/resistance level for the past three weeks. And if capitalization does not go up, and the price again manages to fall below $30,000, one can expect increased pressure from the bears and a new wave of active sales. 65% of experts agree with this. But there are also professional market participants who maintain a moderately bullish mood, which is confirmed by positive premiums for March futures, + 3.5-5.0%. And the head of investment company Pantera Capital Dan Morehead expects to see "bitcoin for $45,000 or even more" in February. However, he advises traders and other industry participants to be as prudent as possible.
As Reuters reported, fortune teller Maren Altman from New York makes her predictions of the bitcoin rate based on the movement of the stars. She predicted the beginning of the January correction of bitcoin absolutely accurately, since on that day the trajectory of Mercury (the price of BTC) should have been crossed by Saturn (the limiting indicator). Looking ahead, Ms. Altman sees “some favorable signals at the end of the month and especially in February and early March.” “However, a big correction will begin in mid-March,” the fortune teller says. “Mid-April also looks pessimistic. May is bullish.”
Now that Bitcoin has lost the $32,000 and $30,000 support, a growing number of analysts are suggesting that the price could retest the $24,000 support. One theory behind the dip suggests that institutional investors viewed Bitcoin as a crowded trade and decided to take profits.
Bitcoin moved lower on Wednesday after several days of consolidation. The cryptocurrency fell to weekly lows of about $ 33,400, losing more than 8% at the moment. However, Bitcoin still remains in a well-defined channel that formed after the rise of the cryptocurrency to $ 42,000 and the subsequent correction. The market has been in this state for about two weeks already - within 14 days the price has changed by half a percent. In the short term, the decline is expected to continue due to whales. Whales bring bitcoins to exchanges. No question, it will go up to $ 100,000 this year, but in the short term, unless we see significant buying pressure on Coinbase, I think BTC will be in a bearish trend.
If the crypto market is indeed cyclical, extra caution should be taken in the next few weeks, in the event that Bitcoin goes into a sharp decline, the altcoins will be attracted by the massive retail FOMO, which will push BTC up for a while. In early February, Ethereum futures will be launched, now the coin is growing in anticipation of this event, however, as with Bitcoin in 2017, growth is not a guaranteed result of this event.
Bitcoin bulls and bears are playing a tug-of-war near the $ 35K support level. Over the past 24 hours, Bitcoin has lost more than 3% and traded about $ 35,000, dropping below the support line of the last four weeks. In addition to the supporters of the growth theory up to $ 50K, there are other market participants who believe that what is happening at the moment may resemble the scenario of the end of 2017, when Bitcoin first reached a historical maximum, then a rather short altcoin season began, and after that “crypto winter” came. If such a scenario really comes true, then we have already seen the historical maximum of Bitcoin above $ 40K, Ethereum (ETH) yesterday reached its past all-time high, which may be the starting point of the altcoin season. The demand from miners for video cards is also similar to the hype in early 2018, when alternative cryptocurrencies showed intense growth.
The volume of transactions on the ETH network is now 28% higher than on Bitcoin. IntoTheBlock's report says that investors have started withdrawing ETH from trading floors. This trend usually signals an imminent resumption of the rally. For example, on January 14 alone, more than 621,000 ETH left exchanges. The key players are now large altcoin holders. The Santiment team found out that it is the "whales" that are withdrawing ether from the exchanges. They are clearly attuned to long-term storage of cryptocurrency. The reduction in the volume of ETH on trading floors fueled demand, which allowed the price to renew its maximum.
Ethereum may not have hit the limit yet, both in the short and long term. The asset price may soon rise to $ 1,500. Ethereum may rise in price up to $ 1600. At this mark, the next Fibonacci level is located, which is a short-term target for the asset rate.
Ethereum (ETH) shows quite impressive growth of 10% per day and changes hands above $ 1,300. The explosive growth sent the price to all-time highs, although selling pressure increased near $ 1400. Until the February launch of ETH futures on the CME platform, we can see significant growth. The Greed and Fear Index for Bitcoin and the largest cryptocurrencies demonstrates an almost unchanged value per day, adding only one point to 80 in the "extreme greed" zone.
Bitcoin has been adding almost 4% over the past 24 hours and is trading at about $ 36,600, developing consolidation. At the same time, corrective pullbacks are becoming less and less deep, although the upper limit remains the level of $ 40K.In the event that Bitcoin confidently exceeds the threshold of $ 40K, we can see a new FOMO impulse among crypto market participants, within which even those who have taken profits can reopen positions in anticipation of new highs. As Bitcoin approaches $ 50K, the likelihood of a large-scale correction will increase significantly. Psychologically, it will be difficult for the market to overcome such a high value, although the forecasts sound more and more optimistic.
Bitcoin is ready to aim at $ 27,000 if support near $ 30,000 fails. Altcoins will be “destroyed” by correction if BTC drops to $ 27,000. As a rule, they have less liquidity and volumes, and therefore respond more actively to the mood swings of traders.
The total cryptocurrency market capitalization is barely above $ 1 trillion, periodically falling below this level due to waves of corrections. However, the market is hovering around an all-time high that could not be set even during the rally in late 2017. Another positive sign is the decrease in the greed and fear index for Bitcoin and the largest cryptocurrencies. Since last week, the index has dropped 11 points to the value of “79”, which, although it still corresponds to the “extreme greed” regime, is still much closer to neutral level. The RSI on the daily charts came out of the overbought zone, reflecting the neutral values.
Bitcoin was unable to re-overcome the $ 40K threshold, remaining within the corrective scenario. However, the support level near $ 35K has not been broken, and crypto market participants are not showing panic. After impressive growth in October-January, the benchmark cryptocurrency needs consolidation. Price swings of $ 33K- $ 40K fit well into the mass perception of the acceptable range of fluctuations for a given market. On the other hand, the sharp bullish momentum is paused.
Earlier, as it approached $ 20K, Bitcoin faced many waves of corrections, and now the coin may face waves of profit taking as it reaches $ 40K. Nevertheless, in the crypto community, the forecast for growth up to $ 50K is becoming stronger. Given the volatile nature of the crypto market, this price level is quite real. Institutional investors at the end of last year announced growth targets not only above 100 thousand, but also above 300 thousand, assuming the potential for multiple growth from current levels. Alternative cryptocurrencies supported the growth of the first cryptocurrency. Altcoins are now the most risky assets to invest, as they attract the greatest retail demand, which means they are more prone to correction than BTC.
The top 100 Bitcoin addresses have been very bullish over the past 30 days. In total, almost 350,000 new bitcoins appeared on these wallets. Even more optimistic news is that most of these addresses did not react to the correction in any way. Withdrawal operations were recorded on a very small number of Bitcoin addresses.
Bitcoin is recovering, strengthening for the third day in a row. Since the beginning of Wednesday, the first cryptocurrency has added almost 5 thousand dollars, approaching $ 39,000 on Thursday. Institutional market players have again bought bitcoin from retail investors, experts say. While retail investors were selling, institutions took advantage of the pullback to buy more. Cryptocurrency financial services provider NYDIG, in a conversation with The Block, also noted that over the weekend, institutions were overwhelmingly on the side of buyers. During the decline, 89% of our customers' requests were for purchase. We see that our client base, which is made up of institutions with very long-term prospects, such as insurance companies, is using depreciation to build positions.
We saw the touch of another all-time high above $ 40,000, and all participants in the crypto market are psychologically ready to see growth up to $ 50,000, where, probably, we will see really strong resistance and even a possible trend reversal due to profit taking by many large players. However, is 50k the limit in the current bullish cycle? Hardly. Globally, now all the prerequisites for the continued growth of cryptocurrencies in general, in addition, we received another proof of the operation of crypto factors, including halving.
The current consolidation may turn out to be quite lengthy by the standards of the crypto market in recent weeks. However, we saw the touch of another all-time high above $ 40k, and all participants in the crypto market are psychologically ready to see growth up to $ 50k, where, probably, we will see really strong resistance and even a possible trend reversal due to profit taking by many large players.
Bitcoin is decreasing by 4% per day and is trading near the lower border of $ 33k, showing no obvious dynamics in any direction. Unable to sharply return to growth, the benchmark cryptocurrency began to consolidate around the previously occupied levels. The rally condition and FOMO did not give Bitcoin time to consolidate important price frontiers after exceeding $ 30k. The current consolidation may turn out to be quite lengthy by the standards of the crypto market in recent weeks.
The market was positively influenced by the fact that the cryptocurrency platform Gatehub does not plan to remove XRP, despite Ripple's litigation with the Securities Commission (SEC). In the statement of the trading platform, it is said that the deletion will take place only after the issuance of a uniqueness of the judicial decision. The Gatehub team affirms that XRP is a token utility, and that Ripple has not observed "inappropriate behavior".
It was a very busy day for Bitcoin and the entire crypto market in general. Corrections are an inevitable consequence of the transition to new stages of the rally, however, without a long-term strategy, it is easy to succumb to a panic wave. Digital currencies are capable of going through stages of growth, correction, consolidation and return to the rally in an incredibly saturated mode, compressed to several days. The current situation may just fit into a similar pattern: within just a few days, Bitcoin managed to fall down by $ 10,000 and initiate a return to growth.
A pullback in the bitcoin price was expected. However, do not despair. The market drop will allow investors to enter the crypto sphere at better prices. According to the businessman's forecasts, we will soon reach $ 50,000 again, and in the second quarter Bitcoin will be able to approach $ 100,000. It is too early to speculate about a complete reversal of the trend. As in the beginning of the year, buyers can come to the aid of bitcoin, because the fundamental grounds have not changed yet: the Americans are preparing to sign large-scale incentives, and the markets are flooded with liquidity, which is parked in assets showing at least some positive yield.
The fall in bitcoin, which started on Sunday, continued throughout Monday. The daily decline was the largest since the crisis in March last year. In two days, the first cryptocurrency lost about a quarter of its value, dropping below $ 31,000. It makes sense to take profits against the background of bitcoin falling below $ 33,000. Bitcoin's parabolic rise is not viable in the short term and is vulnerable to a pullback. The technical target for the $ 35,000 rally has been exceeded.
The global markets started the week quite alarmingly, which did not fail to affect Bitcoin. By the start of trading on European markets, the rate dropped to $ 32.3 thousand (-23% from Friday's peak). This failure should be attributed to the increased traction in security papers on world markets. The rally in the yield of American Treasuries has been going on since the beginning of last week, but by the end of it it began to influence many other markets, sucking liquidity from them.
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