What was supposed to be a good news for bitcoin has in fact turned out be a reason for price drop. After the launch of Bitcoin Etf the price has been dropping!
Read on to find out what is up next for this crypto.
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Table of Contents
Bitcoin Price Analysis
Right now, bitcoin price is $39,226.23. The market capitalization stands at $769.09B . So far this year, Bitcoin has a given negative returns of -7.17%.
The Bitcoin price has been trading in a narrow range between $38,000 and $40,000 for the past week, as it struggles to find a clear direction amid mixed signals from the market.
The next plan of action is simple. Bitcoin will witness a jump after going past the resistence line.
Why Bitcoin is Falling!
On one hand, the launch of the first spot Bitcoin ETFs in the US has boosted the demand and liquidity for Bitcoin, increasing adoption of the cryptocurrency.
On the other hand, the looming threat of regulation from the US government, especially after former President Donald Trump doubled down on his anti-CBDC stance, has created uncertainty and fear among some investors.
The RSI (Relative Strength Index) is below 50, indicating a bearish momentum, while the MACD (Moving Average Convergence Divergence) is negative, signaling a downward trend.
Weekly Price Analysis
The price started the week at $40,306.46 and reached a high of $41,671.10 on 20 Jan 2024. However, the price failed to sustain above the $40,000 level, and dropped to a low of $38,515.47 . The weekly change is -2.69%, and the weekly volume is $29.27B .
The weekly price movement of Bitcoin shows a bearish pattern, as it forms lower highs and lower lows, indicating a lack of buying pressure and a dominance of selling pressure.
The next support levels are at $38,157.85 and $36,009.24, while the next resistance levels are at $42,212.19 and $44,360.80.
News Roundup
Here are some of the latest news headlines related to Bitcoin that could have an impact on the Bitcoin price and market:
- The daily pace of outflows from the vehicle, also known as GBTC, hit a peak of $641 million on 22 Jan 2024 but cooled to $394 million by 25 Jan 2024. This could indicate a reduced selling pressure and a renewed interest in Bitcoin among institutional investors.
- The United States government has announced its intention to auction nearly $118 million worth of Bitcoin seized during the Silk Road case. This could have a minor impact on the Bitcoin price and supply, as the auction is expected to attract high-profile bidders and buyers.
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