Bitcoin traders expect swing high return after BTC price hits $42,000
Bitcoin (BTC) prices broke $42,000 for the first time in seven days, while the market rebounded from a Bitcoin exchange-traded fund (ETF)-linked selloff.
According to data from Cointelegraph Markets Pro and TradingView, Bitcoin rallied from $39,545 on January 26 and gained 5% to trade at $41,973.
Bitcoin's price performance comes as the market faces a slowdown in outflows for Greyscale's GBTC spot ETF.
According to data from BitMEX Research, GBTC saw a withdrawal of $394.1 million on January 25, $429.3 million on January 24, and $515.3 million on Tuesday, January 23.
While GBTC outflows remain very high, the Jan. 25 figure marked the second-lowest level since Bitcoin ETF trading began on Jan. 11.
Bitcoin Spot ETF Flow – Day 10
Data is out for all providers.
$80m net spend for 10 days pic.twitter.com/iFa1KTOk4t
— BitMEX Research (@BitMEXResearch) January 26, 2024
Senior Bloomberg ETF analyst James Seifert released a chart showing Bitcoin ETF premiums and discounts over the past 10 days, to which fellow analyst Eric Balchunas responded, “It's a beautiful view.”
Arbitrary bands narrowing .. beautiful sight. The US ETF ecosystem is doing its thing. https://t.co/g26kGMP4cA
— Eric Balchunas (@EricBalchunas) January 26, 2024
Independent market analyst Yakuza BTC successfully set a trap for bears hoping to capture the price at $32,000. Yakuza adds, “Late shorts are already liquid or about to be.
#Bitcoin trap successfully set.
Late shorts have already liquidated or are about to.
She will never oppose the mafia. Regardless of market conditions, order and follow to be profitable.$BTC pic.twitter.com/6hR3jZGlke
— Yakuza (@YakuzaInCrypto) January 26, 2024
Related: Crypto exec sees ‘mid-to-low' $20K BTC price ahead of new all-time highs
In line with Yakuza's observations, data from CoinGlass shows that Bitcoin paid $34.3 million in short-term position liquidity on the day. Cristo-crypto short liquidity has topped $77 million.
The current market trend is a reason for optimism among crypto investors and traders, who are hoping to see the long-term impact of the Bitcoin price through spot Bitcoin ETF trading.
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.
