Bitcoin Holds Steady Near Monthly Lows, Ether Contends with Resistance; Older Bitcoins Sold in Surge
Summary:
Bitcoin's value remained near its monthly lows on January 20 as Ether faced a key resistance level. Noted trader Michael van de Poppe suggested that Bitcoin's price floor could potentially settle in the mid-$30,000s. Rekt Capital, another well-known trader, postulated that Bitcoin might be experiencing typical trends before block subsidy halvings, predicting a price retreat over the next month. During the recent dip, significant quantities of older Bitcoins were sold, amounting to around $900 million. In terms of altcoins, Ether, which recently made swift advances against Bitcoin, faced a long-term downward trendline.
As the Wall Street market opened on January 20, Bitcoin (BTC) maintained a relatively close value to its monthly lows, while Ether (ETH) encountered a significant resistance level. The ongoing weakness of BTC's price was observed in the wake of a plunge to $40,600 the previous night. This dip represented Bitcoin's lowest value since December 18, in a climate where repeated attempts to recover the lost value have been unsuccessful.
Michaël van de Poppe, the founder and CEO of MN Trading, agrees with the prevailing belief suggesting that Bitcoin's price bottom might settle around mid-$30,000. According to van de Poppe, it appears plausible that the price will probe lower values before rebounding upward. His personal interest lies in accumulating more Bitcoin in the $36-40K range, which remains defined.
Rekt Capital, a popular trader and analyst, expanded on this hypothesis, postulating that Bitcoin is currently undergoing typical fluctuations observed prior to block subsidy halvings. As previously covered by Cointelegraph, such a trend typically predicts a price pullback throughout the upcoming month preceding the halving event in April.
Additionally, during the recent price dip, the selling of "older" Bitcoins surged, with a significant load of 59,000 BTC making its first on-chain movement in the past three to six months. Social media commentator Ali stated on X that these coins were originally obtained at an average price of $26,000, which translates to an approximate realized earning of $900 million.
Past research indicated that last week's decrease from $49,000 was the result of considerable whale selling activities. As for altcoins, most of the focus was on ETH/BTC due to it facing a long-term descending trendline. Since the previous week, Ether had gains against Bitcoin, hitting 0.06 BTC before experiencing consolidation near this value, the highest since April 2022.
According to Caleb Franzen, senior analyst at Cubic Analytics, this consolidation is happening at a resistance trendline situated above the 200-day moving average cloud. A chart provided with his analysis on X indicates this trendline acting as resistance since September 2022. Drawing on additional data, Franzen anticipates ETH/USD to persistently outperform BTC/USD in the future.
This piece doesn't aim to supply investment counsel or suggestions. Each investment or trading action carries certain risks, and readers are encouraged to carry out individual research prior to making any decisions.
Published At
1/19/2024 4:26:35 PM
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