Bitcoin price shows strength at $43K despite Coinbase selling GBTC
Bitcoin (BTC) pushed above $43,000 on January 15 as the market tried to recover from the post-spot BTC exchange-traded fund (ETF) sell-off on January 10. At the time of writing, BTC was hovering around $43,100, up 0.89% on the day.
This recovery comes after BTC's last week's attempt to push above $50,000 stalled at $49,000, indicating the inability of buyers to sustain higher levels.
The price of Bitcoin stands below $44,000
According to data from Cointelegraph Markets Pro and TradingView, BTC price volatility tracked a trip above $43,000 before reversing, with the market down 1.05% in two hours.
The move comes as traders try to shake off a sell-off following last week's approval of a spot Bitcoin ETF in the United States.
In an X (formerly Twitter) post, popular trader Skew noted that BTC spot markets were broadly stalled around $43,000, with “increasing demand liquidity” above the current price.
$BTC Binance SpotPrice rises above price ($44K) and stops here.
Key LTF high and 4H 200EMA ~ $43,168 pic.twitter.com/105qhKinMV
— Skew Δ (@52kskew) January 16, 2024
The ongoing recovery, Skew added, was led by the Grayscale Bitcoin Trust (GBTC) selloff, with some traders possibly buying the dip.
$BTC seems like everyone is trying to ride the price action led by GBTC, what could go wrong lol pic.twitter.com/iw6s4Bjlhx
— Skew Δ (@52kskew) January 16, 2024
When asked about Bitcoin's recent price action, Cointelegraph Head of Markets Ray Salmond said:
“As far as I can see, traders have seen the ETF sell off and decided to open shorts since the approval. Also, since bvol [Bitcoin options volatility] It fell during the day before approval and traders in the put options. Selling GBTC on Coinbase seems to paint a short-term picture for some, leading traders to short. But as Skew points out, they may eventually flatten out, and the rally to the mid-$50s will continue.
Related: Will Bitcoin Continue to Fall Because of ETFs?
However, considering how BTC/USD has been stuck between $41,500 and $43,000 for the past few days, analyst Mack believes that Bitcoin's next leg may continue towards $38,000:
“About $40,000 and maybe $38,000 is very possible here. Either $45,000->$40,000 or sideways and $40,000 from here.”
The dominance of BTC is greater
In support of Bitcoin's declining strength, Michael van de Pop, founder and CEO of trading company MNTrading, posted on X on January 12 that Bitcoin will continue to lose ground to other cryptocurrencies in terms of combined cryptocurrency market cap:
“#Bitcoin could be reaching highs and marking the top of the cycle before losing its dominance. Altcoins can be better. [in the] Time to Come”
History repeats itself.#Bitcoin may mark the top of the cycle before its dominance declines.
Altcoins may be better than the coming session. pic.twitter.com/ox36x2M5NG
— Michael Van de Pop (@CryptoMichNL) January 15, 2024
Bitcoin's Market Dominance Index dropped to 49.82% in one week from 54.56% in the area.
Gains in Ether (ETH) accounted for 8.5 percent of Bitcoin's dominance, with other altcoins posting similar gains.
This suggests that traders following ETF approvals are diverting capital from Bitcoin to the altcoin market as they see a better risk reward elsewhere, especially with the Ether ETF currently on the table.
If this happens, altcoins, led by ETH, may begin to rally as the market enters the highly anticipated altcoin season.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
