Bitcoin price drops below $ 30,000 as ‘moment of truth’ arrives, says trader



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Bitcoin (BTC) retested the $ 30,000 support on January 27, as a day of losses resulted in a psychologically significant price level violation.

BTC / USD (Bitstamp) 1 minute candle chart. Source: Tradingview

BTC price scares the middle of the GameStop row

Data from Cointelegraph Markets and Tradingview showed that the bullish momentum left by Bitcoin was dissipating on Wednesday after the rejection at highs near $ 33,000.

“A new test of $ 30,000 for #Bitcoin”, summarized Michaël van de Poppe, analyst at Cointelegraph Markets.

Although aiming for another test of monthly lows, Bitcoin’s price action did little to surprise regular market participants. For compatriot Scott Melker, it was a question of “waiting and seeing” until the longer delays were over.

“6 o’clock looks like 4 o’clock. 12 hours takes 10 more hours, so hardly worth watching. But the potential is there. Conclusion: No clear signal yet, but worth keeping an eye out if they can accumulate, “he wrote in a series of tweets on Wednesday.

Resolving the current price action would nonetheless be a “moment of truth” for BTC / USD, it said.

As Cointelegraph reported, attention was largely focused on the GameStop action throughout the day, after its 700% bimonthly winnings gained media and regulator attention.

Likewise, the AMC movie chain defied expectations, which gained 240% in one day after avoiding bankruptcy.

Hodl on, Redditors promise

Bitcoin, despite being a more profitable buy-in than at almost any time since Christmas, has failed to hold the limelight.

“People have maximum interest of $ 40,000 per #Bitcoin, but almost zero interest at $ 30,000 per #Bitcoin. Interesting,” Van de Poppe added.

Data from the Whalemap chain monitoring resource Highlighted a $ 29,300 zone as probable support in the event of a $ 30,000 outage.

Portfolio influx offering support and likely resistance levels for BTC / USD. Source: Whaling map

Also noteworthy is the Dollar Currency Index (DXY) which shows its traditional inverse correlation with BTC as markets open on Wednesday. DXY rebounded to its highest level in nearly two weeks as BTC and stocks retreated.

Dollar currency index (DXY). Source: Tradingview

Cryptocurrency skeptics meanwhile used the GameStop debacle to despise Bitcoin and those who argued that decentralized investing was a beneficial phenomenon.

“Warning #Bitcoin HODLers: The only people who will walk away with real wins from the #GameStop short-squeeze will be those who are smart enough to sell. Those who HODL will likely lose everything. Bitcoin HODLers will suffer the same fate if they do not succeed. not making their profits on paper, “the gold bug Peter Schiff tweeted.

A look at the subroutine used for stock games, r / Wallstreetbets, meanwhile, showed that users’ strategies focused on hosting, not selling, their newly profitable stocks – at the expense of unprepared hedge funds.

“Retail reflexivity in action in traditional markets”, commented trader Philip Swift, adding:

“Never underestimate the power of the masses.”

The quotes in this article from previously published sources have been changed slightly.