Bitcoin traders see flash as bulls cling to $44k ETF count
Bitcoin (BTC) is targeting the first weekly close of 2024 at $44,000, as several new exchange rates line up.
Bitcoin traders expect movements from range limits.
Data from Cointelegraph Markets Pro and TradingView showed a narrowing of volatility in BTC's price performance over the weekend.
BTC/USD Markets were nervous about the reaction to the approval or rejection of the United States' first-ever Bitcoin exchange-traded fund (ETF) – a decision due by January 10.
Cointelegraph reports that the seminal event is widely predicted to deliver a temporary blow to the bulls in the form of a BTC price correction in the “news selling” event. Others see it as an opportunity to strike a nerve that can challenge key psychological levels.
While the move could go in either direction, indicators point to a breakout from the narrow intraday range.
Among them was the Bollinger Bands volatility indicator, which is now narrowing into a range expansion in the classic precedent on daily time frames.
“Bollinger Bands are getting closer to the ETF week,” trader and analyst Matthew Hyland told subscribers at X (formerly Twitter) overnight.
Associate trader Dan CryptoTrades added that the so-called “spot premium” is active again in bitcoin markets, with derivatives traders looking wary of going long or short after last week's rapid liquidation.
The #Bitcoin spot premium has rebounded since the recent surge.
It's trading at a higher premium than before, pushing it to $40k.
It often looks like people who have come out strong recently are afraid of going long and are generally overpowered longs. pic.twitter.com/E7iocINH5L
— Daan Crypto Trades (@DaanCrypto) January 7, 2024
“The longer we stay in this price range, the more positions will build with stop losses/liquidity sitting above and below the price,” he continued, alongside a heat map of BTC/USDT liquidity on the largest global exchange, Binance.
Bitcoin ETF covers incoming US CPI, PPI data.
While attention focused on ETFs, macroeconomic headwinds were waiting in the wings.
RELATED: March Bank Crisis Risks 40% Bitcoin Crash Again – Arthur Hayes
These were in the form of US inflation data, with both the Consumer Price Index and the Producer Price Index due in the coming days for December.
Typically a source of short-term volatility for crypto, and a risk asset in its own right, the data releases should ostensibly show a decline in inflation.
According to Cointelegraph, the key outcome of this – on the Federal Reserve's interest rate policy – is currently not expected to take place at the next scheduled meeting at the end of the month.
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.
