Bitcoin price fell sharply below $ 33,500 but then rebounded to $ 34,700

Bitcoin price is recovering from a steady decline while ETH options traders predict another high water milestone after it reaches an all-time high of $ 1,439. Bitcoin’s 24-hour range is between $ 33,430 – $ 36,794. BTC is below the 50-hour moving average on the hourly chart, a sideways signal is emerging.

bitcoin-price-fell-sharply-below-33500-but-then-rebounded-to-35600

BTC/USD 4-hour chart | Source: TradingView

Bitcoin price fell to a low of $ 33,430 and then recovered the US day with the new President

It is a long trend and is mostly downward in price. Bitcoin was at a high of $ 36,794 just 24 hours ago. It was down over $ 3,300 before moving up a bit, at $ 34,707 at this point.

Constantin Kogan, a partner of crypto investment firm Wave Financial predicts Bitcoin will drop to at least $ 30,000 USD:

“This is where the bulls will begin to actively buy again. If they fall past this level, it could drop to almost $ 26,000.”

The strangled derivatives market has certainly happened over the past 24 hours. Liquidations extended on Jan. 19, including early Asian-hour trading leading to Wednesday’s market, totaled $ 121 million. On January 10, the last time a massive number of long liquidations occurred, $ 555 million in bullish investment leverage transactions was called in and the Bitcoin market dropped to $ 30,300.

However, Michael Stark, market analyst at brokerage firm FX Exness, expects larger financial players to continue pouring money into the bitcoin market as investors continue to avoid risky assets. like gold and look at risk instruments like stocks and cryptocurrencies.

Stark stated:

“Bitcoin is almost certainly going to eventually continue, but things need to stop here and there.”

With a new president of the United States, taking office on Wednesday, bringing in a host of new policies – including the expectation of more fiscal stimulus – traders can be optimistic that more dollars are flowing into the economy. Factors can lead to higher cryptocurrency prices. The overall Bitcoin market is still in bull mode; less than a month ago, the spot price above 1 BTC was under $ 25,000.

However, nothing is certain, notes Joshua Mahony, senior market analyst at exchange IG. The question for current markets is whether the US Congress will remain politically divided, “with Biden hoping that Democrats will vote on party lines to help him push. push through a series of huge spending packages, ”Mahony said.

The second largest cryptocurrency by market cap, ETH, fell on Wednesday, trading around $ 1,338 and down 3.8% in 24 hours. The price of ETH also dropped on Wednesday although not as much as Bitcoin.

In fact, the current day option orientation in the ETH market favors calls, according to Skew. A call option is an option, but not an obligation, to buy an asset at a set price and time. Options currently dominate those options, 66% versus 34% for call options, which are contracts allowing the sale of the right, but without obligation.

Wave Financial’s Kogan, although bitcoin is currently bearish, is expected to see more bullish results from ETH in the near future. It looks like options traders agree, based on how they are positioned.

Kogan stated:

“The expected rebound of ETH does not follow bitcoin, which shows the strength of the ETH trend. We are waiting for a rally to $ 1,300 over the next few days, the growth will continue and very much. Soon we might see $ 1,800.”

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