Bitcoin (BTC) hit a seven-week low heading into its close on January 22, as traders warned that things were only going to get worse.
Mr. Hayes says BTC price decline is “still a long way off”
Cointelegraph Markets Pro and TradingView It showed that BTC price fell to $39,440, causing only a slight recovery.
The largest cryptocurrency is being sold by sources such as Grayscale Bitcoin Trust (GBTC), Bitcoin's largest institutional investor, as part of a new spot Bitcoin exchange-traded fund (ETF) consumer rotation. faced consistent sell-side pressure from
Currently down as much as 20% compared to January highs, BTC/USD is providing little inspiration to traders, with some predicting fresh losses as liquidations increase.
“There’s more to come…” said Arthur Hayes, former CEO of cryptocurrency exchange BitMEX. summarized On X (old Twitter).
Keith Allan, co-founder of Trading Resources Material Indicators, echoed similar sentiments.
Uploading a chart of long and short signals from one of the platform's proprietary trading tools, it warned that bulls need to “build some momentum” at the current price of nearly $40,000. If not, it could go back to $38,000 next time.
What's more important than getting your $40,000 back? #BTC I was able to regain VWAP and get back into the range. The bulls need to build some momentum, otherwise I expect it to reach the $38,000 range. #NFA pic.twitter.com/IOTZxGyMyp
— Keith Allan (@KAProductions) January 23, 2024
another chart showing Meanwhile, BTC/USDT bid liquidity on Binance, the world's largest exchange, highlighted bidder interest just below the spot low, but sellers were absent until $44,000.
The material indicator further pointed out that a type of Bitcoin whale has been making continuous purchases throughout the last month, amounting to $800 million.
'Big squeeze' seen after GBTC cooldown
Bloomberg Intelligence analyst James Seifert charted the ongoing swings among the nascent spot ETFs and suggested that GBTC is not out of the woods yet when it comes to BTC sales.
Related: Are BTC longs waiting for sub-$40,000?5 things you need to know about Bitcoin this week
GBTC sold a total of $640 million in Bitcoin on January 22nd, negating previous signs that sales were slowing.
Still, Seifert pointed to increased inflows to other ETFs, particularly BlackRock's iShares Bitcoin Trust (IBIT), which posted $272 million in gains on the day and helped the company This was the third largest number.
Latest news: BlackRock numbers released. #bitcoin ETF Coin Tacky Derby. Day with the third highest inflow $IBIT That's still $272 million. Net outflows for the day were only -$76 million. https://t.co/ySE0edbz4c pic.twitter.com/RzgH6qn5Md
— James Seyffert (@JSeyff) January 23, 2024
“Bitcoin ETF volume continues to be very strong,” he said. Added In a previous post on X.
“Today we passed $2 billion again. $GBTC still accounts for more than half of it. Total volume for the first 7 business days is just under $19 billion.”
Meanwhile, for Marty Party, a popular crypto social media commentator, there is light at the end of the tunnel.
On January 21, he argued that the ETF sell-off should start to ease as the initial turmoil following the ETF's launch has given way to a more stable upward trend.
“The $2.135 billion short is scheduled to be liquidated pushing up to 42,500,” he said in part of X’s comments, along with liquidity data from on-chain analytics platform CryptoQuant.
“Binance will keep an eye on the short squeeze fueling the FOMO rally, which includes retail and new institutional participants.”
While looking at the heatmap, I am calling for a “big squeeze.”
– @FTX_official sold out $GBTC and $BTC And this will have an impact on the media circuit.
– @Binance is in court and the case could be thrown out by the end of today. Their Royal Flush was completed and leveraged longs were entered during the ETF… pic.twitter.com/WymX4jmIep— Marty Party (@martypartymusic) January 22, 2024
This article does not contain investment advice or recommendations. All investment and trading moves involve risk and readers should conduct their own research when making decisions.
