price fell below the critical $40,000 support level when a weak trend was expected due to macro and technical reasons by traders and experts.
- After a rally triggered by significant purchases from retail and institutional investors in December, a correction in the Bitcoin price was anticipated.
- As major support has been broken and the CME Bitcoin gap has been filled, dip buying is expected for long positions.
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Following intense selling pressure on Bitcoin and cryptocurrencies in the last 24 hours, investor Peter Brandt shares his views.
Brandt Reveals His Views on Bitcoin Price
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In the last 24 hours, the crypto market witnessed $250 million in liquidations, including $60 million in Bitcoin long positions from a total of $70 million. The BTC price fell below the critical $40,000 support level when a weak trend was expected due to macro and technical reasons by traders and experts.
However, after a rally triggered by significant purchases from retail and institutional investors in December, a correction in the Bitcoin price was anticipated. COINOTAG reported a CME Bitcoin gap around $39,700, and this gap was finally filled as Bitcoin dropped to a 24-hour low of $38,923.
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Reacting to the Bitcoin price prediction by trader Cheds, who suggested that sideline players would again take long positions below $40,000, Peter Brandt acknowledges that the drop likely originated from weak long positions. Contrary to the downward trend and weak buying from bulls below $40,000, Peter Brandt says, ‘I would like to see what happens when the parabola is retested.’
With the primary support broken and the CME Bitcoin gap filled, a dip purchase is expected for long positions. However, the parabola shared by Peter Brandt indicates a likely retest at the end of February or the beginning of March. March will be a crucial month for BTC traders in terms of macro and sensitivity post Bitcoin halving. The world will be awaiting a turning point in the U.S. Federal Reserve’s monetary policy decision in March.
What is the current state of U.S. data?
The U.S. 10-year treasury yield is hovering around 4.15%. The U.S. dollar has returned from 101 to 103.50 since the beginning of January, and the DXY index is currently at 103.29. Bitcoin traders are preparing for significant economic data at the end of this month, including the U.S. Treasury’s annual payment announcement on January 31.
What’s the latest on whale activity?
It has been reported that whales have sold about 70,000 BTC worth over $3 billion in the last two weeks. According to popular analyst Ali Martinez, Bitcoin is repeating correction patterns before a halving. On the 4-hour chart, Bollinger Bands and RSI indicate a buying opportunity for BTC. RSI drops into oversold territory.
BTC price has dropped by 5% in the last 24 hours and is currently trading at $38,930. The 24-hour low and high values are $38,839 and $41,242, respectively. Additionally, the trading volume has increased by 85% in the last 24 hours, indicating interest among traders.