BTC Price Recovers From $40.3K Discounts ‘Slowed Down’ By Bitcoin Volumes
Bitcoin (BTC) is nearing $42,000 for the January 21 weekly close.
BTC price expects new signals.
Data from Cointelegraph Markets Pro and TradingView showed that BTC price action stabilized above $41,000 over the weekend. The pair earlier fell to $40,270 on Bistamp – its lowest since December 11.
Despite the major downside, Bitcoin offered little hope for those looking for new highs, with market participants looking ahead to Wall Street's weekly close and reversal.
Prominent trader and analyst Rect Capital warned on X (formerly Twitter) that “Bitcoin has indeed dropped to weekly lows after turning black to new resistance.”
“Closing below the lower range every week would be boring and could start the breakout process.”
#BTC has dropped to weekly lows after breaking into new resistance
A weekly close below the range low would be boring and could start the split process $BTC #Crypto #Bitcoin pic.twitter.com/SXQ5BfQ4Ds
— Rekt Capital (@rektcapital) January 19, 2024
Fellow trader crypto Tony maintains a chance of a trip below $40,000 amid a halving of the block subsidy in April.
$BTC / $USD – Update
Medium at the moment, but I'm expecting $38,000 when April Legends halve pic.twitter.com/n3t3a33kXW
— CryptoTony (@CryptoTony__) January 21, 2024
Joe McCann, founder of crypto fund Asymmetric, pointed out how little trading volume Bitcoin was currently seeing.
“Bitcoin vols have definitely decreased since the ETF launch (as expected),” he told X subscribers, alongside data from data exchange Deribit.
“The spread between implied and actual volts is the widest it's been in a long time.”
“All Eyes” on GBTC Sales
The US space continues to be a source of particular interest for bitcoin exchange-traded funds (ETFs).
Related: Ethereum looks to end 18-month losing streak against Bitcoin
As Cointelegraph reports, these have increased their assets under management by nearly $4 billion since their January 11 launch, helping to offset the impact of the sell-off from Grayscale Bitcoin Trust (GBTC).
The latter, itself now an ETF, has seen its exit due to both high maintenance fees and the desire of existing investors to cash out in the same space. Previously, GBTC shares were trading at up to a 48% discount to BTC/USD.
GBTC saw an outflow of $1.17B after switching from a trust to an ETF,” trading firm QCP Capital wrote in its latest market update on January 17.
This is not surprising as GBTC has traded at a discount since 2020 (down to -48% in early 2023). This ETF conversion is a long-awaited opportunity for GBTC holders to exit at a reasonable price. The question is how much more GBTC's current $25.4b AUM will generate.
QCP added that “all eyes” were on future GBTC flows.
“The next major crypto events are the BTC halving (in mid-April) and the ETH Spot ETF approvals from May. In the meantime, he predicts that crypto may take some direction from macroeconomic events.
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.
