Bitcoin (BTC) price is showing general weakness as it struggles to identify $ 34,000 as support. Overall, Bitcoin appears to be in a stagnation state with no signs of a short-term relief meeting, prompting traders to be wary.
One trend is that bitcoin volume stays the same along with price, with the exception of Elon Pump on January 29th. This trend indicates an overall decrease in consumer demand from $ 42,000, despite the fact that BTC is at a low of $ 30,000.
Bitcoin hesitates after visiting $ 38,000
On January 29, Bitcoin surged to $ 38,461 on Binance after Tesla President and the world’s richest man, Elon Musk, expressed support for Bitcoin.
However, prior to this rally, network analysts had already warned that Bitcoin’s momentum was waning.
For example, Ki Yong Joo, CEO of CryptoQuant, pointed to increased selling pressure from bitcoin miners as a sign of a short-term bearish scenario.
Although the price of bitcoin cards rose 14%, within 24 hours it was back to less than $ 34,000. Hence, weak indicators in the chain could be a warning that BTC will be tracking most of Elon Pump’s profits.
Key wrote before assembly:
The stock whale ratio is at an eight-month high, which means that $ BTC could have a big red light if the price falls. If this revolutionary race is legal, it should be below 85%. Otherwise, it would probably be a bull trap. ”
The prices of whales, which were likely traded for bitcoin, soared to the $ 38,000 resistance level, triggering a sharp correction.
Given the shaky chain indicators and some pressure from miners, traders are also wary of the long-term outlook for BTC / USD.
A trader known as Salsa Tequila said he does not use leverage until Bitcoin breaks down or drops to $ 30,000. He said:
“We got to the point where the $ BTC is well below 30,000 kronor, I don’t like the longing with any impact, but at the same time I don’t want to be short. So the big fall site / legacy is open / maybe Monday morning is the best.
Meanwhile, another famous merchant known as the “Byzantine General” claims that the march fell through. Hence, while Bitcoin is bullish in the big picture, there are more potential drawbacks until you see a convincing breakout from lower timeframes. This is without:
“IMO still has upside potential, but the rally has been interrupted. If we restore the annual TWAP, we can continue to grow, but until then, everything looks good. ”
What do you see outside?
Traders and technical analysts are closely following Bitcoin’s response from $ 34,500 to $ 35,000.
If Bitcoin is decoupled from it through strength, momentum, and volume, the likelihood of a short-term trend reversal increases.
However, if Bitcoin struggles to test the $ 34,500 resistance level and continues to plunge into the $ 33,000 area, there is still the risk of further collapse towards the $ 33,000 support level.
Crypto Fear and Green Index (78 or “extreme greed”). Source: data on digital assets.
Additional signs that the price of BTC may fall again, including the Crypto Fear Index and the Greed Index, which remain at “extreme greed,” and Google has been looking for 50% of “Bitcoin” since its multi-year high earlier this month. …