Bitcoin (BTC), which hit new multi-month lows Jan. 24, was a classic example of price behavior.
BTC/USD 1-minute candle chart (Binance). Source: TradingView
“Rangeplay” for BTC after CME gap fill
Data from TradingView and Cointelegraph Markets Pro showed that BTC/USD dropped to $32,967 on Bitstamp just before the Wall Street opened on January 24.
This level was the beginning of a CME futures gaps left over from July 2021. Bitcoin filled it almost to the dollar, before reversed upwards to add more than $1,000 in just minutes.
Expectations were high for the opening of trading on the United States equity markets, with volatility evident.
Weekends are a scam. (Low volume markets
Adam Back (@adam3us), January 23, 2022
Bitcoin will now fight for $34.1K-34.4K. “If that reclaims,” Michael van de Poppe, a Cointelegraph contributor, stated to his Twitter followers. He noted the closure of the CME gap.
“Rangeplay at that point.”
BTC/USD was trading at just under $34,000 as of the writing. There were approximately an hour and a quarter before the U.S. Open.
Zooming out, investors’ behavior appeared to counter concerns about short-term sellers. Alistair Milne, an entrepreneur and investor, noted that the Bitcoin supply has been stationary for at least a year. This is a level not seen since previous capitulation events.
Just 60% of #Bitcoin’s unmoved percentage for 12 months or more has been recorded. This is higher than the level at which it was at the close of the March 2020 COVID crashes…higher than the 2016/16 bear market…higher than the end of 2018/19 bear markets/end transmission
— Alistair Milne (@alistairmilne), January 24, 2022
Even though Bitcoin was at its lowest point in 2018, when it reached $3,100, a drawdown that exceeded 80%, the current resolve of long-term investors was evident.
HODL Waves data provided by Glassnode, an on-chain analytics firm, confirmed active hodlers.
Bitcoin HODL Waves chart (screenshot). Source: Unchained Capital
Ether attracted $1,800 bid target
Major altcoins were facing worsening conditions on this day. Ether (ETH), which lost almost 11%, fell to $2,000.
Related: Bitcoin ‘enters value zone’ as BTC price floor metric goes green again
The market capitalization of the largest altcoin was not the only reason for its rapid fall. Solana (SOL) was also a major contributor to the decline, leading 10 top-ranked altcoins down nearly 18% as of the writing.
Popular trader and analyst Pentoshi says that the current bid levels to be watched are below $2,000 support, more than 60% lower than recent highs
He stated that $1800 is a great price for $ETH and that he still believes in time we get there.
BITSTAMP: ETH/USD 1-hour candle charts Source: TradingView.