With the new $40K BTC price target, Bitcoin gained only 0.6% in January
Bitcoin (BTC) looked to recover losses on February 1 after the monthly close turned sour for BTC price action.
Bitcoin shakes the ETF month upside down
Data from Cointelegraph Markets Pro and TradingView tracked BTC/USD dropping to $1,000 from a low of $41,860 on Bistamp.
These immediately followed the close of the January candle, which saw Bitcoin 0.6% higher for the first month of 2024.
Bulls face continued struggles to regain lost ground after plunging 20% from a two-year high of $49,000, and as February begins, calls for new lows have faded.
In an update to subscribers on X (formerly Twitter), trading resources Material Indicators pointed to new negative recommendations from its proprietary trading tools.
“Monthly charts don't necessarily mean prices will be lower this month, but indicate that prices won't make new highs this month unless the new #TradingSignals are canceled,” part of one post explained.
“That said, I'd be surprised if we don't see Bitcoin test support around the ~$38.5k low before the end of the month at least.”
New ⬇️ Signals from Trend Precognition on #BTC & #ETH Monthly Charts don't necessarily mean the price will be lower this month, but the new #TradingSignals indicate that the price won't make a new high this month unless canceled. That said, I wonder… https://t.co/1II6881Bij
— Material Indicators (@MI_Algos) February 1, 2024
$38,500 represents the January low during the 20% BTC price retracement.
As Cointelegraph reported, issues on January 31 were not helped by macroeconomic developments.
The US Federal Reserve, while keeping interest rates in line with expectations, nevertheless sought to end rate cuts in the first half of the year. That move is highly anticipated by risk-asset traders as monetary easing boosts liquidity conditions.
“In considering any adjustments to the target range for the federal funds rate, the committee will carefully evaluate the incoming data, the outlook for evolution and the balance of risks,” an official press release read.
“The Committee does not expect it to be appropriate to lower the target rate until it has confidence that inflation is moving towards a sustainable 2 percent rate.”
Data from CME Group's FedWatch Tool put the odds of a rate cut at the Fed's March meeting at 45 percent at the time of writing.
GBTC exits stabilize around 6,000 BTC.
The first day of February, meanwhile, was seen at about 6,200 BTC by crypto data firm Arkham from Grayscale Bitcoin Trust (GBTC).
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These were consistent with recent days, but still below the 25,000 BTC daily high seen since the switch to the Bitcoin Exchange Traded Fund (ETF).
Today's #Bitcoin sent in $GBTC/Grayscale is worth ~6.2K$BTC or ~$270M.
A bit down from yesterday. This took a while to sink in as it hadn't been buried for nearly a full hour. pic.twitter.com/o7pfU02lzQ
— Daan Crypto Trades (@DaanCrypto) February 1, 2024
The U.S. spot Bitcoin ETFs saw net inflows of nearly $200 million for January 31, according to data from sources including Bloomberg Intelligence.
“Total net revenue since inception was $1.46 billion,” analyst James Seifert added while posting the data to X.
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.
