{"id":16725,"date":"2022-01-18T23:02:26","date_gmt":"2022-01-18T22:02:26","guid":{"rendered":"https:\/\/coinscreed.com\/staging\/?p=16725"},"modified":"2022-01-18T23:02:37","modified_gmt":"2022-01-18T22:02:37","slug":"bitcoin-might-dip-to-38k-before-an-eventual-breakout-warns-analyst","status":"publish","type":"post","link":"https:\/\/coinscreed.com\/staging\/bitcoin-might-dip-to-38k-before-an-eventual-breakout-warns-analyst\/","title":{"rendered":"Bitcoin might dip to $38K ‘before an eventual breakout’ warns analyst"},"content":{"rendered":"\n
The total cryptocurrency market capitalization is now $1.976 trillion, with Bitcoin <\/a>commanding a 40% market share.<\/h5>\n\n\n\n
\"\"<\/figure>\n\n\n\n

On Jan. 18, the cryptocurrency market experienced yet another day of weakness as the price of Bitcoin \r\n \r\n \r\n \r\n <\/g>\r\n \r\n \r\n \r\n <\/clipPath>\r\n <\/defs><\/svg><\/span><\/a>(BTC) fell further, putting extra pressure on the altcoin market. Investors are currently experiencing “Extreme Fear,” according to the crypto Fear and Greed Index, and some traders believe BTC will shortly fall below its recent swing low of $39,000.<\/p>\n\n\n\n

\"Bitcoin<\/figure><\/div>\n\n\n\n

According to TradingView data, bulls <\/a>lost control of the $42,000 support level during the early trading hours on Tuesday, as bears drove the BTC price to a daily low of $41,250.<\/p>\n\n\n\n

\"Bitcoin<\/figure>\n\n\n\n

Janaury seems to be a weak moment for BTC<\/h2>\n\n\n\n

However, according to recent research from Delphi Digital, January “has historically been one of the most disappointing months for Bitcoin” because of the lack of a blow-off top to close out 2021 and the beginning of pyrotechnics to start 2022.<\/p>\n\n\n\n

\"Bitcoin<\/figure><\/div>\n\n\n\n

The primary source of headwinds for Bitcoin, according to Delphi Digital, is “a slowdown in global liquidity growth<\/a> and tighter policy expectations,” and these factors have also led to weakness in the stock market, which is thought to be strongly correlated with BTC price movements.<\/p>\n\n\n\n

Delphi Digital also noted a lack of liquidity in the perpetual and futures markets, as well as a reduction in BTC open interest over the past two months, as sources of weakness.<\/p>\n\n\n\n

According to Delphi Digital,<\/p>\n\n\n\n

\u201cFor the most part, the price contraction stemmed from liquidity issues in the perp\/futures market, which triggered a series of liquidations that exacerbated BTC\u2019s initial price weakness.\u201d<\/p><\/blockquote>\n\n\n\n

What's next, according to Delphi Ditial, “short-term momentum indicators look to hint the worst may be behind us,” and the Fear & Greed index is at levels not seen since May 2021, according to the analyst.<\/p>\n\n\n\n

BTC\u00a0could dip\u00a0below $38,000<\/h2>\n\n\n\n

Decentrader, a crypto market intelligence service, noticed that the number of overly bullish “I'm buying the drop” traders on crypto Twitter was challenged at $41,000, indicating a similar trend of weakening.<\/p>\n\n\n\n

The analysts believe that “a move out of the range to the upside is the most likely outcome eventually,” and that the price “will run towards the 200DMA and the point of breakdown in the summer at around $49,000 \u2013 $50,000,” based on the size and consistency of the BTC <\/a>drawdown over the past two months.<\/p>\n\n\n\n

\"Bitcoin<\/figure>\n\n\n\n

Decentrader said,<\/p>\n\n\n\n

\u201cIt is our view that we may need to see some further ranging between $44,000 and potentially $38,000 before an eventual breakout.\u201d<\/p><\/blockquote>\n\n\n\n

Twitter user ‘John Wick' offered a ray of hope to traders who have been hammered hard by the latest sell-off.<\/p>\n\n\n\n

I just want to take a moment to say to you guys who might be underwater in your positions that its okay. Every cycle this happens. Most of us have to wear these battle scars at least once in our journey to becoming a better trader\/investor. I know I did.Just don't give up.\u2014 John Wick (@ZeroHedge_) January 18, 2022<\/p><\/blockquote>\n\n\n\n

The whole cryptocurrency <\/a>market cap presently stands at $1.976 trillion and Bitcoin\u2019s dominance rate is 40%.<\/p>\n\n\n\n

The thoughts and opinions expressed here are purely those of the author and do not necessarily reflect the views of Coinscreed.com. Every investing and trading action entails risk, you should conduct your own research while making a decision.<\/strong><\/em><\/p>\n","protected":false},"excerpt":{"rendered":"

The total cryptocurrency market capitalization is now $1.976 trillion, with Bitcoin commanding a 40% market share. On Jan. 18, the cryptocurrency market experienced yet another day of weakness as the price of Bitcoin (BTC) fell further, putting extra pressure on the altcoin market. Investors are currently experiencing “Extreme Fear,” according to the crypto Fear and […]<\/p>\n","protected":false},"author":13,"featured_media":16730,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[83,76,21],"tags":[6676,6677,6678],"class_list":["post-16725","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-bitcoin-news","category-bitcoin-price","category-news","tag-bulls-2","tag-dip-2","tag-market-cap-2"],"jetpack_featured_media_url":"https:\/\/coinscreed.com\/staging\/wp-content\/uploads\/2022\/01\/image-127.png","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/16725","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/comments?post=16725"}],"version-history":[{"count":0,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/posts\/16725\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media\/16730"}],"wp:attachment":[{"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/media?parent=16725"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/categories?post=16725"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/coinscreed.com\/staging\/wp-json\/wp\/v2\/tags?post=16725"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}