Bitcoin (BTC) is down more than 2% from its local highs on January 13, in the latest move that has left market participants wondering which of the biggest digital assets to hit.
Hourly BTC/USD light chart (Bit Mark). Source: Trading View
“One step at a time”
Cointelegraph Markets Pro and TradingView data tracked the pull of BTC/USD after the pair reached its highest level in more than a week.
Bitstamp’s trip to $44,450 came after Wall Street opened in a time light that at one point led to a loss of $1,500.
A new sign that distance-related activity remains flat for Bitcoin’s trajectory, bulls have been disappointed after several calls for a fairly small squeeze against $46,000.
To famed analyst and trader Scott Melker: “There have been no clear indications of direction yet.”
“You’re still drifting to the side,” he told Twitter followers on the same day, noting that bitcoin hit lows with a dip below $40,000 earlier in the week, also in line with his own predictions.
Another Daan Crypto Trades Twitter account highlighted an additional $45,700 as an important upside target for a resistance/support reversal.
“The $45.7K level is the next area of interest to look into. This will be the key to reversing this level for the bulls.
“BTC looks good on the LTF, but it still has a lot of work to do on the HTF to call it a proper reversal. Step by step.”
Others were more hopeful of a paradigm shift in the medium term.
“In the coming days and weeks, BTC may reveal a new market structure, in which case it is worth watching closely,” a trader and analyst at Rekt Capital expects.
Related: Traders say $44,000 in bitcoin could be a relief, citing December’s ‘nuclear weapon’ recurrence.
Options traders in the spotlight
The new study also revealed why the $40,000 fell for a short period, while $44,000, on the other hand, became a resistance area later.
According to cryptocurrency exchange QCP Capital, the deciding factor is the options markets, which are now significant enough to have a “significant impact” on Bitcoin’s price movement.
Telegram explained in the update: “For example, one of the main reasons why BTC and Ethereum do not hold below $40,000 and $3,000 is probably because many big players have hits near these levels.” “They naturally create support when they offer delta trading points. And when they use these options positions, the bullish impact on the market is also very clear.”
“Also, the sharp options player who bought the January call at $42,000 started taking profits from the spot level around $44,000 and naturally created enough resistance there.”
Coinglass data shows that open interest in alternatives is still far from all-time highs in 2021.