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Bitcoin (BTC) attempted to rally this morning from $ 3,580 to $ 3,620, but the downward pressure was strengthened and Bitcoin fell back to $ 3,580. In the afternoon, the news was announced that the VanEck SolidX Bitcoin Exchange Negotiated Fund (ETF) had been withdrawnwhich means there will be no Bitcoin ETF in the near future. This announcement coincided with a downward movement of $ 3,520, but Bitcoin has now recovered to $ 3,550 at the time of writing this article.
Overall, Bitcoin lost 1% on the day and several major crypto-currencies followed Bitcoin down. Ripple (XRP) down 1.3%, Ethereum (ETH) down 1.6%, EOS down 1.4%, Stellar (XLM) down 2.2%, Bitcoin SV (BSV) down 0.6%, IOTA down 3.5%, Monero (XMR) down 2.4%, Dash down 1.6% and Dogecoin (DOGE) down 0.8% .
All major crypto currencies are not declining today, ever. The amount of Bitcoin Cash (BCH) increased by 2.2%, that of Litecoin (LTC) by 0.3% and that of Tron (TRX) by 0.9%. The bears won the day however, and the total market capitalization of crypto rose from $ 121 billion to $ 119.5 billion. Most of this decline in market capitalization occurred after the announcement of the withdrawal of the VanEck SolidX Bitcoin ETF.
The fact that the support level of $ 3,500 Bitcoin is maintained despite negative news from the ETFs could be a bullish indicator. The $ 3,500 level has been in place since December 19 and could indicate that a fund is forming. In addition, the futures markets of CME and CBoE Bitcoin experience backwardationwhich means that people are paying more for Bitcoin now than later, which can be an optimistic sign. Also, the Wyckoff chart suggests that a background will occur by the beginning of February.
The expiry of CME Bitcoin futures on January 25 is an important factor that could prevent a bitcoin and crypto rally. It is clear that futures traders have taken short positions at $ 3,900 at the beginning of the month and it will be difficult for Bitcoin to rally until the expiration is over, since Bitcoin generally declines in the market. Expiration on the months when the traders were short.
The fact that $ 3,500 is maintained just before the expiry of the GCE is a positive sign, because it means that short sales can not bring down the market. That would mean that in February, futures traders CME Bitcoin – and other futures traders – could continue for a long time, which could trigger a recovery. It will take up to a week after the expiry of January 25 to know for sure in what direction futures traders are counting.
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