After a day of intensifying sell pressure, Bitcoin price dropped below $29,000 for the first time since January 5. On Jan. 21 the cryptocurrency market experienced an increased wave of selling pressure and within the last hour Bitcoin (BTC) price dropped below the $30,000 mark for the first time since Jan. 4.
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.
As reported by Cointelegraph, Scott Minerd, the Guggenheim’s chief investment officer, recently suggested that the price of Bitcoin has “likely put in a top” for 2021 and could see a “retracement back toward the 20,000 level.”
JPMorgan strategists John Normand and Federico Manicardi also warned that investors using BTC “as a portfolio diversifier are putting themselves at risk” as Bitcoin is more of a cyclical asset than a hedge.
This note of caution seems to have been well timed given today’s show of volatility. Although sell-offs can be painful for investors who are overleverged, taking a closer look at some of the social activity that occurred during the downside move hints that the current volatility might not be a macro trend change.
In private comments with Cointelegraph, TheTIE analyst Erik Saberski noted that during previous dips in Bitcoin price “its market cap dominance did not really change.” Saberski said: “This implies that earlier in the month, sell-offs were cashing out entirely, while recent BTC sell-offs are moving more into other cryptos. Looking at daily sentiment, the same recent drops *usually* have corresponding drops in sentiment. We aren't seeing that right now though.”
The traditional markets continue to be boosted by the prospect of a wide-ranging stimulus package from the Biden administration. The S&P 500 and NASDAQ both etched new all-time highs on Jan. 21 and closed up by 0.03% and 0.82% respectively. The Dow also closed the day with a 0.04% gain.
Out of the top-100 coins, the only project with notable gains was CELO, which gained $48.87% and trades at $3.37. Ether (ETH) corrected by 21.28% and Polkadot lost 8%. The overall cryptocurrency market cap now stands at $871 billion and Bitcoin’s dominance rate is 64.3%.
# | Crypto | Prediction | Accuracy | CVIX | Price | 24h | 7d | Market Cap | 7d price change | |
1 | BTC | Bitcoin predictions | 75.6% | 43 | $71 318.80 | 3.41% | 7.28% | $1 402 605 034 869 | ||
---|---|---|---|---|---|---|---|---|---|---|
2 | ETH | Ethereum predictions | 76.4% | 48 | $3 582.21 | 1.97% | 2.56% | $430 123 035 144 | ||
3 | USDT | Tether predictions | 95.6% | 1 | $1.000154 | 0.07% | 0.01% | $104 470 239 649 | ||
4 | BNB | Binance Coin predictions | 65.2% | 79 | $584.92 | 2.65% | 4.90% | $87 466 656 445 | ||
5 | SOL | Solana predictions | 56.8% | 89 | $187.64 | 3.53% | 1.54% | $83 364 975 832 | ||
6 | XRP | XRP predictions | 82.4% | 31 | $0.622932 | 1.84% | -2.09% | $34 189 161 088 | ||
7 | USDC | USD Coin predictions | 94.4% | 2 | $1.000051 | 0.02% | 0% | $32 218 530 821 | ||
8 | DOGE | Dogecoin predictions | 65.6% | 68 | $0.216701 | 14.21% | 40.63% | $31 129 943 380 | ||
9 | ADA | Cardano predictions | 68.8% | 67 | $0.655944 | 3.12% | 3.51% | $23 339 268 058 | ||
10 | AVAX | Avalanche predictions | 56% | 88 | $54.78 | 2.57% | 0.70% | $20 673 609 802 | ||
11 | SHIB | SHIBA INU predictions | 56.8% | 94 | $0.000032 | 6.16% | 17.46% | $18 794 460 335 | ||
12 | TON | Toncoin predictions | 58.4% | 88 | $5.07 | 2.58% | 22.92% | $17 591 962 049 | ||
13 | DOT | Polkadot predictions | 70.4% | 52 | $9.59 | 2.05% | 3.31% | $13 690 708 606 | ||
14 | LINK | Chainlink predictions | 74.4% | 42 | $19.34 | 0.76% | 4.81% | $11 352 446 788 | ||
15 | BCH | Bitcoin Cash predictions | 70.4% | 60 | $566.47 | 5.58% | 34.29% | $11 149 045 396 |
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