Illiquid supply 'going up relentlessly' — 5 things to watch in Bitcoin this week
Bitcoin (BTC) is starting the final week of January in a place no one wanted but many warned about — a 50% drawdown from all-time highs.
A flight to $34,000 means that BTC/USD is now down by half in just two months, and perhaps naturally, concerns are that the losses could continue.
With $30,000 so far unchallenged, Bitcoin remains slightly above the trough of its dip from $58,000 to $29,000 last summer.
With macro markets facing a tough time of their own thanks to rapidly-changing Federal Reserve policy, crypto holders will be eyeing their coins’ correlation to traditional assets going forward. Can Bitcoin break the trend?
So far, there are few signs that a significant rebound is on the cards, but below the headlines, not all is as it seems when it comes to Bitcoin’s strength.
Cointelegraph presents a look at five areas worth taking note of this week when assessing what could be next for BTC price action.
Bitcoin bears took no notice of out-of-hours trading on Wall Street with the weekend ushering in a new round of losses.
From $39,000 to current lows of $34,000, BTC showed no mercy as liquidations mounted and sentiment took a fresh beating.
Now, traders are naturally eyeing a test of $30,000 as a more definitive representation of how Bitcoin is likely to fare in the short to mid-term.
Other estimates for where some relief may occur previously lay at $33,000 and $31,500, these likewise yet to be reached.
Analyzing various aspects of the on-chain situation, Dylan LeClair, senior analyst at UTXO Management, highlighted Bitcoin’s current cost basis as a potential clue for what he calls a “generational bottom.”
Cost basis refers to the aggregate price at which bitcoins from various cohorts of investors were last moved. The
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