Bitcoin (BTC) has found some peace after the huge increase last week. Bitcoin lost traction at $21,000 yesterday morning, but the price then found support around $20,800 and was able to recapture $21,000 again yesterday evening. At the time of writing, the BTC price stands at $21,200 on Binance and $19,575 on Bitvavo.
This means that the bitcoin price is up 1.2% today. Trading volume fell 2% in the last 24 hours. The total market capitalization is $408 billion and the dominance is 41.2%. The Fear & Greed Index comes out at 51 (Neutral).
Bitcoin Fear and Greed Index is 51 — Neutral
Current price: $21,166 pic.twitter.com/MqHmP6Y9oT
— Bitcoin Fear and Greed Index (@BitcoinFear) January 17, 2023
Key supports and resistances will be tested this week
Although bitcoin had already started to rise cautiously since the turn of the year, it accelerated last week after the US consumer price index (CPI) turned out to be less frightening than feared.
Still, according to analysts, it can be another exciting week, as many prices, including bitcoin, but also the S&P 500 (SPX) and the US dollar index (DXY) are at important resistance or support.
Big week ahead for #Stocks and #Crypto. Looking to see which of these 4 makes the move first. First two are bullish if we go up, second are bullish if we break down. #Bitcoin – At daily resistance$SPX – At $4k resistance$VIX – At major daily support $DXY – At daily support pic.twitter.com/ChKIPEQrJ6
— IncomeSharks (@IncomeSharks) January 17, 2023
Are Bitcoin Miners Profiting?
The pressure on bitcoin miners has been somewhat relieved by the rising price. However, the hash rate and thus the degree of difficulty continues to increase. If the price drops sharply again, the miners will be under pressure again, but this time they will hardly have any reserves left to sell.
Analyst Ali Martinez reports that bitcoin miners bought a large amount of BTC in the new year, but once the price rose above $20,000, they immediately sold this BTC again.
— Ali (@ali_charts) January 16, 2023
Analyst IT Tech adds that he sees bitcoin flowing out of miners’ wallets again. Although these can also be internal transactions, it is also possible that these BTC are sent to exchanges to sell.
#Bitcoin miner movement again.
— IT Tech (@IT_Tech_PL) January 17, 2023
Can this bitcoin rally last?
Analyst Phi Deltalytics reports that other market participants have also decided to send their BTC from their wallets to exchanges to reap profits. This selling pressure, along with the dwindling amount of stablecoins on exchanges, leads the analyst to believe that this recovery rally will be short-lived.
Will the current BTC rally be sustainable?
Spot demand: decreasing
Spot supply: increasing
Recent BTC rally has led to market participants depositing their BTC from cold storage to spot exchanges for profit taking. More demand is needed for the rally to be sustainable. pic.twitter.com/ttU3J162Tv
— Phi Deltalytics (@phi_deltalytics) January 16, 2023
Analyst firm Kaiko also reports that although trading volumes have finally risen sharply, liquidity has not yet recovered from the FTX crash
If we zoom in, we can better see this trend in January.
Market depth has recovered slightly over the past 2 days, but still remains near lows reached during the FTX collapse.
— Kaiko (@KaikoData) January 16, 2023
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