Bitcoin (BTC) fell more than 2% from local highs on Jan. 13, to let market participants guess ahead of time what comes next for the biggest digital asset.
“One step at a time”
Data from Cointelegraph Markets Pro and TradingView tracked the retracement of the BTC / USD pair after the pair hit its highest level in over a week.
A trip to the $ 44,450 mark at Bitstamp after Wall Street opened was followed by an hourly candle that caused intermittent losses of $ 1,500.
A new sign that range activity is still the order of the day for Bitcoin, the bulls were disappointed after several calls for a relatively simple adjustment towards $ 46,000.
For popular trader and analyst Scott Melker, “there was still no clear directional sign”.
“It’s still moving sideways,” He said to Twitter followers that day, and he noted that Bitcoin had hit lows earlier in the week, falling less than $ 40,000, which was in line with his own predictions.
His Twitter colleague Daan Crypto Trades also highlighted the $ 45,700 level as a major bullish target for any resistance / support change.
â € œThe $ 45,700 level is the next area of interest that’s on my radar. It will be key to change that level for the copsâ ???? wrote.
“BTC looks good on LTF, but still has a lot to do on HTF to call this a correct reversal. One step at a time. “
Others were hoping for a paradigm shift in the medium term.
“In the coming days and weeks, BTC could uncover a new market structure, in which case it is worth paying close attention to.” forecast trader and analyst Rekt Capital.
Options traders take center stage
New research also suggested the reason why $ 40,000 was short-lived as a drop and $ 44,000 later became a resistance area instead.
According to crypto trading company QCP Capital, the determining factor lies in the options markets, which have meanwhile become significant enough to have a “significant influence” on the price development of BTC.
“For example, a main reason for the lack of tracking for BTC and Ether below $ 40,000 and $ 3,000, respectively, may be that the few big players at that level are having strikes,” explained an update from Telegram. â € œOf course theyâ € ™ ll build up support when bidding for places to trade in the delta there. And when they benefit from these option positions, the positive effects on the market are also very clear ”.
“Also, a smart options player who bought 42,000 calls in January began to profit from those around the $ 44,000 cash level, which of course created some resistance.”
Open interest in options remains far from the all-time highs of 2021, Coinglass data shows.