Bitcoin (BTC) cracked $37,000 at the Jan. 28 Wall Street open as traders watched and waited for a resistance retest.
BTC evades a major resistance test
As part of the range-bound behavior, hopes were held high that momentum would continue to challenge resistance levels closer to $40,000, whether or not the ultimate outcome would be a fresh correction.
“The bearish scenario seems most likely, which is exactly the reason why I think we’ll see a surprising move,” popular trader Crypto Ed said as part of comments on the immediate outlook.
“Only after a convincing reclaim of $40K I’ll be full bull.”
Fellow trader and analyst Anbessa reiterated previous demands for $38,500 to hold to proclaim the corrective phase as complete for Bitcoin.
#BTC has re-entered the $28000-$38000 consolidation range
BTC last consolidated in this range in Q1 and Q2 of 2021
— Rekt Capital (@rektcapital) January 25, 2022
On Jan.24, Rekt Capital highlighted the area for Bitcoin to reclaim to rekindle bullishness on longer weekly timeframes. As reported, this would come in the form of $39,600 as a weekly close price.
“Similar vibes” to early 2018
Crypto Ed, however, was not alone in his feeling of foreboding over a possible fresh breakdown.
Despite taking liquidity during its brief dip below $33,000 earlier in the week, Bitcoin has not convinced everyone that the floor is truly in.
Discussing the issue, Twitter analyst TXMC Trades, concluded that BTC/USD “still needs to go lower” from the current spot price. History, it seems, supports the theory.
“It seems wrong that BTC would bleed straight down from the ATH without a relief rally, only to have the reversal be front-run without properly testing the range low,” he argued.
“Similar vibes to April 2018 where the $6K bounce was front-run, but ultimately collapsed. Just a gut feel.”
TXMC nonetheless noted that the bounce from $33,000 had liquidated more short positions than at any point since Bitcoin’s $69,000 all-time highs last November, citing data from on-chain analytics firm Glassnode.