Bitcoin (BTC) tested the $ 30,000 support on January 27 as a day of losses that culminated in a psychologically significant price level breach.
BTC price ghosts in the middle of GameStop Row
Data from the Cointelegraph and Tradingview markets showed that Bitcoin’s remaining bullish momentum eased on Wednesday after falling to highs around $ 33,000.
Michael Van de Pope, analyst at Cointelegraph Markets, summed up “another retest of $ 30,000 bitcoin.”
While it aims to further test the monthly downturns, Bitcoin’s price performance hasn’t surprised regular market participants. For co-owner Scott Melker, it was all “wait and see” until the longer timelines were completed.
He wrote: “6 o’clock looks like 4 o’clock. It takes 12 to 10 hours to complete, so it’s hardly worth watching. But there is a possibility. Conclusion: there are no clear indications yet, but it deserves attention if “part of the flow on the environment can accumulate.”
He said that addressing the current price movement would be the “moment of truth” for Bitcoin / US dollar.
As Cointelegraph reported, during the day, attention was focused on GameStop stock, after a two-month rally of 700% attracted attention from both the media and regulators.
Likewise, the AMC cinema fell short of expectations, which rose 240% in one day after avoiding bankruptcy.
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While Bitcoin is a more cost-effective purchase than it has ever been since almost Christmas, it has failed to dominate the limelight.
Van de Pope added: “People have a maximum interest rate of $ 40,000 per bitcoin, but the interest is almost zero at $ 30,000 per bitcoin. It is interesting”.
Data from network monitoring provider Whalemap marked the $ 29,300 area as potential support in the event of a $ 30,000 crash.
It should also be noted that the US Dollar Index (DXY) shows its traditional inverse correlation with BTC when markets open on Wednesday. DXY returned to its highs in nearly two weeks, while BTC and stocks declined.
Meanwhile, cryptocurrency skeptics have used the GameStop disaster to express contempt for Bitcoin and those who argued that decentralized investment is a profitable phenomenon.
“Attention #Bitcoin HODLers: the only ones who give up real winnings from short pressing #GameStop will be smart enough to sell. HODL is likely to lose everything. Bitcoin HODLers will suffer the same fate if they do not receive paper profits. ” – tweeted gold expert Peter Schiff.
Meanwhile, a quick look at the r / Wallstreetbets stock gaming subreddit revealed that users’ strategies are focused on collecting newly profitable stocks rather than selling off untrained hedge funds.
Trader Philip Swift commented on “reflecting retail in action in traditional markets,” adding:
“Never underestimate the strength of the masses.”