Bitcoin (BTC) Started the New Year in a Short Term Downward Trend

bitcoin price rocket

Bitcoin (BTC) price welcomed the New Year in a short-term downward channel. On the 1st of January, the value of Bitcoin (BTC) saw a slight decline of less than one percent against the U.S. dollar. Bitcoin (BTC), which tested a weekly high of $4,240 before Christmas, plunged to as low as $3,561 a few days later.

The digital currency attempted a slight bull run on the 28th of December. Nevertheless, it fell short of $4k due to the low trading volume and lack of adequate bullish momentum. The low trading volume and week momentum is probably as a result of the New Year break.

On the first day of the year, Bitcoin (BTC) was consolidating inside a temporary declining channel, waiting for a breakout as it maintains the downward pressure. The value of Bitcoin (BTC) is failing to excite traders to place long positions around some high highs.

The $4k to $4,240 region continues to act as hurdle points for Bitcoin and prevent further rallies. If the conditions of the market don’t change, Bitcoin (BTC) might form a double bottom towards $3,129. Bitcoin was earlier targeting the $3,500 mark for a potential bounce back. Nevertheless, the digital currency is now correcting higher, and it is now trading close to the $3,960 level.

Bakkt’s Bitcoin (BTC) Futures Contracts Will Be Launching Soon

Bakkt – a Bitcoin (BTC) futures trading platform backed by Intercontinental Exchange – will soon be launched in the retail market. Bakkt was initially scheduled for launch on the 24th of January this year. However, ICE recently announced that the launch date has been shifted due to the process and requirements of the Commodity Futures Trading Commission.

This means that big players staying away from the market at the moment and small retail actions are not enough to spike a bull run that BTC investors are hoping for. Bakkt could be a catalyst to the value of Bitcoin (BTC). It could push the value of the digital currency towards the $5k level, if not further.

The fundamentals of the microeconomic are also supporting Bitcoin (BTC) partially, as the value of the dollar is heading into a negative zone. As a result, investors are likely to find safe havens. However, this doesn’t mean that all investors will dive into Bitcoin (BTC). But a slight push from the side of mainstream investors might be bullish enough to push the value of Bitcoin (BTC) a bit.

Bitcoin (BTC) needs more bullish momentum to push its value. The digital currency has been trading below the $5k level for the past months. An increase in adoption and use cases is what the digital currency needs to surge higher and attract more investors in the crypto space. The entire crypto market is tied to Bitcoin (BTC). When Bitcoin surges higher, it carried the entire market along. So when Bitcoin recovers significantly, the entire market will follow suit.

Bitcoin (BTC) Price Today – BTC / USD

Name Price24H (%)
Bitcoin (BTC)
$3,621.40
0.14%

At the time of writing, Bitcoin (BTC) is changing hands at $3,935 after an increase of 1.8 percent over the past twenty-four hours. The digital currency is currently capped at the $4k mark, and it needs more bullish traction to surge over that level. Bitcoin (BTC) currently has a market cap of $66 billion with a trading volume of $2.73 billion over the past twenty-four hours.

Leave a Reply

This site uses Akismet to reduce spam. Learn how your comment data is processed.