Bitcoin (BTC) retested the USD 30,000 support on Jan. 27, as a day of losses culminated in a breach of the psychologically significant price level.
BTC price scares in the middle of GameStop row
“Another $ 30,000 test for #Bitcoin,” said analyst Cointelegraph Markets Michaël van de Poppe summarized.
Despite striving for a new test of monthly lows, Bitcoin’s price action hardly surprised mainstream market participants. For fellow trader Scott Melker, it was just a matter of “wait and see” until the longer time frames were over.
“6 hours seems like 4 hours. 12 hours need another 10 hours, so hardly worth watching. But the potential is there. The bottom line: no clear signal yet, but worth getting into keep an eye out if they can build up, ”he says wrote in part of a series of tweets on Wednesday.
The resolution of the current price action would nevertheless be a “moment of truth” for BTC / USD, he said.
As Cointelegraph reported, attention was generally focused on GameStop stock throughout the day, after its biweekly profit of 700% caught the attention of both the media and regulators.
Likewise, expectations defied the cinema chain AMC, which gained 240% in a day after avoiding bankruptcy.
– Cameron Winklevoss (@cameron) January 27, 2021
Hodl on, Redditor’s vow
Bitcoin, despite being a more cost-effective buy-in than at almost any time since Christmas, has not remained in the spotlight.
“People have a maximum interest rate of $ 40,000 per #Bitcoin, but almost no interest of $ 30,000 per #Bitcoin. Interesting,” Van de Poppe added.
Data from Whalemap, a source for chain monitoring marked an area of USD 29,300 as likely support in the event of a USD 30,000 outage.
Also worth noting is that the Dollar Currency Index (DXY) shows its traditional inverse correlation with BTC as the markets opened on Wednesday. The DXY rebounded to its highest level in almost two weeks, while BTC and stocks pulled back.
Cryptocurrency skeptics, meanwhile, used the GameStop debacle to scorn Bitcoin and those who claimed that decentralized investments were a beneficial phenomenon.
Attention #Bitcoin HODLers: The only people who walk away with real profits from the #GameStop short squeeze are the ones smart enough to sell. Those who use HODLs will likely lose everything. Bitcoin HODLers will suffer the same fate as they do. fail to realize their paper profits, ‘says gold virus Peter Schiff tweeted.
A look at the subreddit used to play stocks, r / Wallstreetbets, meanwhile, showed that user strategies focused on grabbing, not selling, their newly profitable stocks – at the expense of unprepared hedge funds.
“Retail Reflexivity in Action in Traditional Markets,” noticed trader Philip Swift, adding:
“Never underestimate the power of the masses.”
Quotes in this article from previously published sources have been slightly modified.