BTC price analysis sees $38K next if bitcoin bulls fail to rally.
Bitcoin (BTC) hit new seven-week lows on January 22 as traders warned of worse to come.
Hayes down on BTC price: “We still have a long way to go”
Data from Cointelegraph Markets Pro and TradingView saw BTC price drop to $39,440 with only a modest recovery.
As part of the consumer rotation among the largest cryptocurrency new space Bitcoin exchange-traded funds (ETFs), sources including Grayscale Bitcoin Trust (GBTC), the largest Bitcoin institutional investment vehicle, have experienced consistent sell-side pressure.
Now down as much as 20% from January highs, BTC/USD has provided little incentive for traders, with some predicting fresh losses as liquidity mounts.
“We still have a long way to go…,” Arthur Hayes, former CEO of the crypto exchange BitMEX, summarized on X (formerly Twitter).
Keith Allan, founder of marketing resource Material Indicators, shared his thoughts.
Uploading a chart of long and short signals from the platform's proprietary trading tools, he warned that bulls should “build some momentum” at the current price around $40,000. If not, a return to $38,000 could be ongoing.
More importantly than retrieving $40K, #BTC managed to regain VWAP and climb back into the range. Bulls need to build some momentum or I'm expecting a visit to the $38k range. #NFA pic.twitter.com/IOTZxGyMyp
— Keith Allan (@KAProductions) January 23, 2024
A separate chart showed the BTC/USDT bid liquidity for the biggest international exchange Binance, meanwhile, the interest of the bidders immediately below the lowest level – but with the absence of sellers up to $44,000.
Material indicators have also seen a segment of Bitcoin whales make continuous purchases over the past month, which has topped $800 million.
A “huge squeeze” was seen following the GBTC freeze.
GBTC is not out of the woods yet when it comes to BTC selling, according to Bloomberg Intelligence analyst James Seifert.
RELATED: Is BTC Waiting Longer Below $40K? 5 things to know in Bitcoin this week
GBTC sold a total of $640 million in Bitcoin on January 22, erasing earlier signs that sales were slowing.
However, Seifert pointed to other ETFs, notably BlackRock's iShares Bitcoin Trust (IBIT), which earned $272 million on the day — the third largest.
Update: BlackRock's numbers are in for the #Bitcoin ETF Cointucky Derby. Third biggest grossing day for $IBIT at $272 million. Only – $76 million net flow for the day. pic.twitter.com/RzgH6qn5Md
— James Seyff (@JSeyff) January 23, 2024
In a previous X post, he added, “The volume on the Bitcoin ETF remains very strong.”
“Over $2 billion today. $GBTC is still a little over half. The total volume in the first 7 trading days is just shy of $19 billion.
For popular crypto social media analyst MartiParty, there was light at the end of the tunnel.
ETF selling should begin to ease now, he argued on January 21, as the initial turbulence following their launch gives way to more stable growth.
“$2.135b shorts are about to flow pushing to 42500,” he said in an X commentary with liquidity data from on-chain analytics platform CryptoQuant.
“Binance, including FOMO rally participants and new institutional buyers, turn their attention to short squeezes.”
Looking at the heat map of The Big Squeeze.
– @FTX_Official sold out of $GBTC and $BTC and this hits the media circuit.- @binance is in court and their case may be dropped at the end of the day, their Royal Flush is complete and the long period entered in the ETF… pic.twitter.com/WymX4jmIep
— Martyparty (@martypartymusic) January 22, 2024
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.
