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bitcoin price plunged nearly 4% to trade at $40,033 at 1:05 a.m. EST, but trading volume increased 125%.
The measure involved the liquidation of more than $218 million in long positions compared to $35.23 million in short positions.
<img decoding="async" class="aligncenter wp-image-474246 size-full" src="data:image/svg+xml,%3Csvg%20xmlns=" http:="" alt="btc Liquidations” width=”1322″ height=”370″ data-lazy-srcset=”https://technicalterrence.com/wp-content/uploads/2024/01/Bitcoin-Price-Prediction-BTC-Plunges-4-to-Below-40000-But.png 1322w, https://insidebitcoins.com/wp-content/uploads/2024/01/BTCliquidations-300×84.png 300w, https://insidebitcoins.com/wp-content/uploads/2024/01/BTCliquidations-1024×287.png 1024w, https://insidebitcoins.com/wp-content/uploads/2024/01/BTCliquidations-768×215.png 768w” data-lazy-sizes=”(max-width: 1322px) 100vw, 1322px” data-lazy-src=”https://technicalterrence.com/wp-content/uploads/2024/01/Bitcoin-Price-Prediction-BTC-Plunges-4-to-Below-40000-But.png”/><img decoding="async" class="aligncenter wp-image-474246 size-full" src="https://technicalterrence.com/wp-content/uploads/2024/01/Bitcoin-Price-Prediction-BTC-Plunges-4-to-Below-40000-But.png" alt="btc Liquidations” width=”1322″ height=”370″ srcset=”https://technicalterrence.com/wp-content/uploads/2024/01/Bitcoin-Price-Prediction-BTC-Plunges-4-to-Below-40000-But.png 1322w, https://insidebitcoins.com/wp-content/uploads/2024/01/BTCliquidations-300×84.png 300w, https://insidebitcoins.com/wp-content/uploads/2024/01/BTCliquidations-1024×287.png 1024w, https://insidebitcoins.com/wp-content/uploads/2024/01/BTCliquidations-768×215.png 768w” sizes=”(max-width: 1322px) 100vw, 1322px”/>
btc Liquidations
The move caused up to $480 million in open interest to be removed from the market, going from $16.79 billion to $16.31 billion between January 22 and 23.
<img decoding="async" class="aligncenter wp-image-474247 size-full" src="data:image/svg+xml,%3Csvg%20xmlns=" http:="" alt="btc Open Interest” width=”1325″ height=”432″ data-lazy-srcset=”https://technicalterrence.com/wp-content/uploads/2024/01/Bitcoin-Price-Prediction-BTC-Plunges-4-to-Below-40000-But”https://technicalterrence.com/crypto/bitcoin/”>btc-OI.png 1325w, https://technicalterrence.com/wp-content/uploads/2024/01/Bitcoin-Price-Prediction-BTC-Plunges-4-to-Below-40000-But”https://technicalterrence.com/crypto/bitcoin/”>btc-OI-300×98.png 300w, https://technicalterrence.com/wp-content/uploads/2024/01/Bitcoin-Price-Prediction-BTC-Plunges-4-to-Below-40000-But”https://technicalterrence.com/crypto/bitcoin/”>btc-OI-1024×334.png 1024w, https://technicalterrence.com/wp-content/uploads/2024/01/Bitcoin-Price-Prediction-BTC-Plunges-4-to-Below-40000-But”https://technicalterrence.com/crypto/bitcoin/”>btc-OI-768×250.png 768w” data-lazy-sizes=”(max-width: 1325px) 100vw, 1325px” data-lazy-src=”https://technicalterrence.com/wp-content/uploads/2024/01/Bitcoin-Price-Prediction-BTC-Plunges-4-to-Below-40000-But”https://technicalterrence.com/crypto/bitcoin/”>btc-OI.png”/>btc-OI.png” alt=”btc Open Interest” width=”1325″ height=”432″ srcset=”https://technicalterrence.com/wp-content/uploads/2024/01/Bitcoin-Price-Prediction-BTC-Plunges-4-to-Below-40000-But”https://technicalterrence.com/crypto/bitcoin/”>btc-OI.png 1325w, https://technicalterrence.com/wp-content/uploads/2024/01/Bitcoin-Price-Prediction-BTC-Plunges-4-to-Below-40000-But”https://technicalterrence.com/crypto/bitcoin/”>btc-OI-300×98.png 300w, https://technicalterrence.com/wp-content/uploads/2024/01/Bitcoin-Price-Prediction-BTC-Plunges-4-to-Below-40000-But”https://technicalterrence.com/crypto/bitcoin/”>btc-OI-1024×334.png 1024w, https://technicalterrence.com/wp-content/uploads/2024/01/Bitcoin-Price-Prediction-BTC-Plunges-4-to-Below-40000-But”https://technicalterrence.com/crypto/bitcoin/”>btc-OI-768×250.png 768w” sizes=”(max-width: 1325px) 100vw, 1325px”/>
btc Open Interest
The drop comes amid increasing volatility in the market, with altcoins also suffering the consequences of the bitcoin price drop.
The rising volatility could extend until the market is certain that the price of bitcoin has bottomed. Some analysts say the rising volatility is due to “big players” in the btc market initiated by the historic approval of bitcoin exchange-traded fund (ETF) applications on January 10.
btc drops 3% and everyone is in full panic lmao
You want the ETF, right?
Didn't you realize you were allowing the world's biggest market manipulators into your private btc house?
What did you expect to happen?
I predict a LOT more volatility, now that the big… https://t.co/Cdhr8ixXA1
— FranksRevenge.eth (@FrankClientele) January 22, 2024
Elsewhere, there is a faction of traders who say the drop was a healthy correction, causing bitcoin price to collect buy-side liquidity below the $40,726 level.
Downside liquidity taken.
The pullback is now -20%, on par with previous corrections in this cycle.
Strong close today and I'm sure we've hit rock bottom. bitcoin?src=hash&ref_src=twsrc%5Etfw”>#bitcoin pic.twitter.com/tQTTdLR8WV
– Jelle (@CryptoJelleNL) January 22, 2024
The healthy correction thesis could be correct, as bitcoin price is fueling what could be a recovery rally. It is recording a green candle after several red Japanese candles.
bitcoin price could face a brief contraction
Elsewhere, since btc exchange-traded funds (ETFs) began trading on January 11, investors have moved billions of dollars worth of bitcoin out of the Grayscale Spot ETF (GBTC).
A Coindesk report, which cited people close to the matter, revealed that much of these outflows were attributed to FTX liquidators who sold 22 million shares. These were worth almost $1 billion and reduced FTX's ownership of GBTC to zero.
LADLE: @FTX_Official sold about a billion dollars of @Grayscale's $GBTC from #bitcoinETF approval, which explains a large part of his departure.@IanAllison123 reportshttps://t.co/9t04mPvFhT
—CoinDesk (@CoinDesk) January 22, 2024
With the sales representing up to a third of GBTC's total outflows, the report alleges that FTX has completed the sale of its substantial holdings and therefore may not have any more GBTC to sell. According to crypto Banter founder Ran Neuner, this means easing the selling pressure that can catalyze a bounce in the price of bitcoin.
Wait, if $1 billion of sales on GBTC were FTX LIQUIDATORS as reported, that's 1/3 of the total outflows. That changes the whole picture! That sale is already made.
In fact, we could get a bounce now and that could trigger a short squeeze.
– Ran Neuner (@cryptomanran) January 22, 2024
With this, crypto Banter executive says a short squeeze may be in the works. To the layman, a short squeeze is an unusual condition that initiates a rapid rise in the asset's price. It is the result of an increase in short selling.
This means that many investors are betting that the price of the asset will fall. It begins when the price rises unexpectedly, gaining momentum as a large number of short sellers decide to cut their losses and close their positions.
bitcoin Price Outlook as Analysts Anticipate Brief Contraction
bitcoin price is trying to recover, which could work given that the Relative Strength Index (RSI) has tilted north to show increasing momentum. If investors buy the dip, the resulting buying pressure could push bitcoin price north to reclaim the critical support at $40,726.
Further north, gains could extend until bitcoin price returns to the channel, above the $43,750 support. This could provide the starting point for btc to target the psychological level of $48,000.
In a very bullish case, bitcoin price could extend the rally, reaching the psychological level of $50,000, last tested in December 2021. This would represent a 25% rise above current levels.
<img decoding="async" class="aligncenter wp-image-474248 size-full" src="data:image/svg+xml,%3Csvg%20xmlns=" http:="" alt="btc price” width=”1273″ height=”544″ data-lazy-srcset=”https://technicalterrence.com/wp-content/uploads/2024/01/1706033729_17_Bitcoin-Price-Prediction-BTC-Plunges-4-to-Below-40000-But.png 1273w, https://insidebitcoins.com/wp-content/uploads/2024/01/BTCUSDT_2024-01-23_09-00-24-300×128.png 300w, https://insidebitcoins.com/wp-content/uploads/2024/01/BTCUSDT_2024-01-23_09-00-24-1024×438.png 1024w, https://insidebitcoins.com/wp-content/uploads/2024/01/BTCUSDT_2024-01-23_09-00-24-768×328.png 768w” data-lazy-sizes=”(max-width: 1273px) 100vw, 1273px” data-lazy-src=”https://technicalterrence.com/wp-content/uploads/2024/01/1706033729_17_Bitcoin-Price-Prediction-BTC-Plunges-4-to-Below-40000-But.png”/><img decoding="async" class="aligncenter wp-image-474248 size-full" src="https://technicalterrence.com/wp-content/uploads/2024/01/1706033729_17_Bitcoin-Price-Prediction-BTC-Plunges-4-to-Below-40000-But.png" alt="btc price” width=”1273″ height=”544″ srcset=”https://technicalterrence.com/wp-content/uploads/2024/01/1706033729_17_Bitcoin-Price-Prediction-BTC-Plunges-4-to-Below-40000-But.png 1273w, https://insidebitcoins.com/wp-content/uploads/2024/01/BTCUSDT_2024-01-23_09-00-24-300×128.png 300w, https://insidebitcoins.com/wp-content/uploads/2024/01/BTCUSDT_2024-01-23_09-00-24-1024×438.png 1024w, https://insidebitcoins.com/wp-content/uploads/2024/01/BTCUSDT_2024-01-23_09-00-24-768×328.png 768w” sizes=”(max-width: 1273px) 100vw, 1273px”/>
TradingView: btc/USDT 1-Day Chart
Reverse case
On the other hand, it is impossible to ignore the weak price strength, which is seen in the RSI position below 50. The moving average convergence and divergence (MACD) indicator, which continues to move below the signal line ( orange band), this makes this worse. . The MACD is also in negative territory, which adds credibility to the bearish thesis.
Increasing selling pressure could cause bitcoin price to extend the decline, potentially testing the $37,800 support. A stop and close below this level would push btc off a cliff, potentially sending the king of cryptocurrencies to the depths of the psychological $30,000 level. A breakout and close below this level would invalidate the overall bullish outlook.
Meanwhile, cryptocurrency enthusiasts and btc fans remain focused on the halving event that will cut mining rewards in half. The event, which is expected to fuel the next bull market, has investors lining up to acquire btc, only the pioneering cryptocurrency is not affordable for ordinary people. However, bitcoin Minetrix provides the solution.
Promising alternative to bitcoin
To enter the bitcoin Minetrix ecosystem, investors must purchase BTCMTX, the token that powers the project. Token holders stake their holdings for credits and then redeem these credits for mining hash power.
In doing so, the project saves you the hassle that comes with traditional mining, lowering the bar by eliminating fraud risks, heat challenges, noise, space and costs.
#BitcoinMinetrix vs traditional cloud mining
Entry cost comparison: #BTCMTX = Affordable entry with a fixed commitment duration.#ConventionalCloudMining = Requires significant initial deposits. pic.twitter.com/5DhQ7ebHCL
—Bitcoinminetrix (@bitcoinminetrix) January 22, 2024
bitcoin Minetrix is at 21street pre-sale stage, where each token is sold for $0.013. The price will hold for just under three days, even as pre-sale sales surge towards the $9.906 million target. So far, pre-sale sales have reached $9.1 million.
Important announcement! #BitcoinMinetrix achieves a notable milestone: raising over $9,000,000! pic.twitter.com/9rUOkm7Hb7
—Bitcoinminetrix (@bitcoinminetrix) January 22, 2024
Buy into the bitcoin Minetrix ecosystem for a chance to participate early in the btc halving rally. With such an easy path to bitcoin mining and therefore btc ownership, the landscape has never been more level, with a playing field where both the rich and the common people have a good chance of participating in the action.
#BitcoinMinetrix revitalizes the cloud mining landscape by merging staking and cloud mining.
Pioneer in tokenized cloud mining that focuses on transparency, autonomy and security. #BTCMTX is dedicated to providing a reliable path for $btc mining enthusiasts. pic.twitter.com/Mrxv0Hnrst
—Bitcoinminetrix (@bitcoinminetrix) January 22, 2024
Visit bitcoin Minetrix to buy BTCMTX here.
Also read:
- Audited by Coinsult
- Secure and decentralized cloud mining
- Earn free bitcoin daily
- Native Token on Pre-Sale Now – BTCMTX
- Staking Rewards: Over 100% APY
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