Bitcoin fills $42K December price wick as analyst says 'party just getting started'
Bitcoin (BTC) delivered fresh volatility on Jan. 6 as rangebound behavior saw its first shake-up in weeks.
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD dropping overnight to hit $42,000 for the first time since December.
Although not the upside breakout that many had wanted, the move was nonetheless predicted, Bitcoin essentially "filling" the space left after it briefly wicked to $41,800 early last month.
Those lows were the result of a liquidation cascade, and while long positions also felt pain this time around, scepticism remained as to whether the revisiting of $42,000 had been enough to put in a price floor.
"Honestly surprised we didn't see more of a flush today if this was aggressive longs built up. Could still resolve to the upside," analyst William Clemente wrote in a series of tweets about the action.
Btw this isn't a doom post. Honestly surprised we didn't see more of a flush today if this was aggressive longs built up. Could still resolve to the upside. All I know for sure is that this party is just getting started. pic.twitter.com/RAgXKzHTnl
Clemente was among those already calling for more volatile conditions this month and noted that the majority of Bitcoin futures open interest (OI) remained. As Cointelegraph reported, OI had hit all-time highs in BTC terms during the week.
As ever, those zooming out found comfort and familiarity in Bitcoin price action versus historical behavior.
Fibonacci levels analyzed by fellow analyst TechDev showed that Bitcoin was still at least attempting to copy patterns built up from previous halving cycles.
Based on everything I have shared for months, and until my invalidation points are reached, it remains my belief that there is a higher than not probability
Read more on cointelegraph.com
