Bitcoin’s continued growth was interrupted by a sharp 20% drop in price to $30,500. And while analysts are trying to understand what was the real reason for this correction, let’s think about what to expect in the near future.
Two days ago, on January 11, the cryptocurrency market reminded everyone of its distinctive feature – extremely high volatility. Bitcoin lost $8,000 in just a day; and compared to the highest price reached last week, the loss was more than $10,000.
Ethereum fell 25% in 24 hours: the price dropped to $915. However, for a better understanding, let’s analyze the situation on the charts.
As expected, the fall in the bitcoin rate stopped above the $30,000 level, after which the coin was quickly bought back. The fall triggered a wave of long position liquidations: deals worth more than $1 billion were liquidated in the Bitcoin market alone
The graph shows that the sales volume that day was very huge. The cryptocurrency set a historic record for trading volume, which exceeded $117 billion on January 11.
But the very next day, the BTC price was restored to $35,000, and at the moment there is a temporary sideways movement between the levels of $32,000 and $35,000. In the near future, BTC may rise in price to $37-38 thousand, and after a decrease in volatility, a detailed analysis of the chart will help determine the future prospects for Bitcoin.
There is a possibility that after a slight increase, the cryptocurrency price will return to $30,000 – $30,500 again because it was at this level that the trading volume reached its maximum. However, if the price of bitcoin drops to $28,500 and below, we can expect a trend change.
As it happens, the fall in bitcoin pulled the rest of the market with it, including Ethereum. On the chart from 11 to 13 January, you can see the formation of a symmetrical triangle, which may signal a further decline in the value of the asset.
“It should be borne in mind that the movement of Ethereum will directly depend on what happens to the price of Bitcoin. BTC, in our case, is a guide asset. I think that even the technical analysis of altcoins in the current situation fades into the background “— shared his opinion Alex Lebed from xSigma DeFi
Bollinger Bands, Stochastic, and MACD signal growth. It is likely that Ethereum will try to return to the $1200 level in the near future. After achieving this goal, you can expect growth to $1400. But all the attention now should be directed to Bitcoin, whose dominance index exceeds 68%. After all, ETH has never shown an inverse correlation with BTC, but on the contrary, has always followed the main asset.