- Bitcoin briefly fell below the $31,000 mark to $30,900, but managed to stabilize at $33,400 at press time.
- Experts are divided as to which direction the next major movement of the Bitcoin price will take place.
Bitcoin has been trending sideways for several days and is currently unable to find a clear direction. Within the last 24 hours, Bitcoin recorded a gain of 1.81% and is trading at a price of $33,400. A few hours earlier, Bitcoin had fallen to $30,900, but quickly managed to attract new buyers at this level. The market capitalization is $620 billion.
Blockroots founder and Bitcoin trader Josh Rager elaborates on Twitter that Bitcoin has broken below the EMA 21 (Exponential Moving Average) in the daily chart for the first time since October last year. Bitcoin price is currently testing this level again. However, a daily close above $34,000 could give Bitcoin new strength and lay the foundation for an uptrend, as Rager analyzes.
Bitcoin finally broke below the 21 EMA on the daily this past week after riding above since Oct
Price is currently retesting the 21 EMA and a break and close above $34k on higher time frames would be a great start
And would showcase this as a bear-trap before more upside pic.twitter.com/y01W0cEQZ2
— Josh Rager 📈 (@Josh_Rager) January 25, 2021
“HornHairs” is bullish on Bitcoin in the short term, stating that BTC could reach $35,000 by mid-week. Here, however, it is important to watch whether whales send their Bitcoins to exchanges to prepare for possible selling and profit taking at this important price level.
$BTC doesn't look *that* bad here…
Just swept price into HTF S/R… untapped highs above
— HornHairs 🌊 (@CryptoHornHairs) January 24, 2021
Other traders, including “yTedd”, are also showing bullishness. Although BTC has been drawing a sideways movement for several days, Bitcoin has never permanently fallen below the important $30,000 mark for several days. According to yTedd, this shows the strength and sustainability of the current bull run.
Back in the day bitcoin numbers only went up
— yTedd (@TeddyCleps) January 24, 2021
In contrast, “Salsa Tekila” states that Bitcoin could suffer a major correction. In his opinion, Bitcoin might first drop to $24,000 in the coming weeks before the Bitcoin price starts a new upward movement. After the recent price rise to almost $42,000, the professional trader believes that there must be another stronger correction
Been saying it for a small while but bitcoin is weak. It can bounce $1K+ at times, always retraces back down past weeks. We're not in a 'up only' market anymore.
I think we'll go to 24k before 34k+, personally.
— SalsaTekila (@SalsaTekila) January 24, 2021
Well-known analyst in Asia “Ki Young Ji” is rather bearish on Bitcoin and describes that new institutional investors need to bring fresh capital into the market to initiate a continuation of the bull run. According to current stock market data, there is still a large number of Bitcoin on exchanges, so large whales could liquidate their holdings and thus ensure a falling price.
I'll keep my bearish bias until there are significant Coinbase premium and Coinbase outflow.$BTC needs USD spot inflows from institutional investors to start the next bull run.
— Ki Young Ju 주기영 (@ki_young_ju) January 24, 2021
World’s largest asset manager indirectly invests in Bitcoin
Beyond the technical and on_chain analysis, however, there has been plenty of Bulgarian news in recent days. As CNF reported, the world’s largest asset manager, Blackrock, ($7.81 trillion in capital under management) has announced that the company will invest in Bitcoin futures through a recently launched fund. Even though it is only cash-settled futures, it could give legitimacy to the market and bring about a wave of adoption that motivates more big-finance firms to invest some of their cash reserves in Bitcoin.