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Updated January 15th, 2024 at 10:36 IST

Bitcoin briefly surges to $49k, market remains volatile

Currently, Bitcoin consolidates around the $46,000 level, influenced by the liquidation of short positions across the market.

Reported by: Anirudh Trivedi
Bitcoin
Bitcoin | Image:Republic
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Crypto market overview: In the last 24 hours, the overall crypto market displayed volatility, especially after the launch of the BTC spot ETF. Notably, spot Bitcoin ETFs achieved a trading volume surpassing $4.5 billion on their first day, indicating positive market sentiment. Bitcoin is currently hovering close to $46,000 with close to a 1 per cent dip when compared to yesterday. 

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On the other hand, the Crypto Fear and Greed Index also witnessed a 5-point decline, reaching 71 points from the extreme greed mark of 76 points. 

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Image credit: Alternative.me

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CoinDCX Research Team while talking to Republic Business said, “BTC touched a new higher high at $49,000 but experienced a quick drop to $46,000, influenced by higher-than-expected CPI data, which had a negative impact on the market. BTC dominance has been on a declining trend, providing room for altcoins to gain traction. ETH is positioned near the key level of $2,640 and is currently consolidating below that resistance. The key support level for ETH stands at $2,450.” 

Underlining the increasing market volatility in the market, Rajagopal Menon, Vice President, WazirX said, “Bitcoin (BTC) surged past the $49,000 mark, a threshold unseen since December 2021, driven by the launch of US-based spot Bitcoin Exchange-Traded Funds (ETFs). After rising from under $46,000 to touch $49,042 in early US trading, BTC pulled back but held below $46,000, marking a minor 1 per cent dip in 24 hours. The ETF debut significantly amplified BTC's price volatility.” 

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Recent data indicates a waning bullish trend for Bitcoin, with the hourly MACD signalling reduced upward momentum. Simultaneously, the BTC/USD hourly RSI has dipped below the critical 50 threshold. Notable support zones are situated at $45,900 and $45,500, while formidable resistance levels are observed at $47,300, $48,200, and $49,000, added Menon.

Revised price outlook

Parth Chaturvedi, Investments Lead, CoinSwitch Ventures said that despite increasing market volatility, investor strength has further strengthened with a revision in analyst predictions including Cathie Wood, ARK Invest's CEO. Cathie, who had previously predicted BTC’s price to reach $1 million by 2030, has revised her prediction to $1.5 million in a bullish scenario. 

Edul Patel, CEO of Mudrex said, “Currently, Bitcoin consolidates around the $46,000 level, influenced by the liquidation of short positions across the market. Resistance stands at $47,300, and support remains firm at the $45,500 level. Optimism is high with the recent introduction of spot Bitcoin ETFs, and this positive shift is evident in the fear and greed index, signalling a prevailing sense of greed in the market. A battle for dominance ensues between bears and bulls, shaping the ongoing market dynamics.” 

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Ethereum looks strong

Vikram Subburaj, CEO, Giottus shared insights into the current market movement and the future outlook for major altcoins. Subburaj said, “Following the ETF approval by the US SEC, the total volume generated on the first day of spot Bitcoin ETF trading stood at $4.6 billion. Greyscale led the pack, by registering $1.2 billion in the first hour of trading. Key altcoins – especially XRP and Solana – have shed their gains while Ethereum is holding on to the $2,600 level.” 

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Sharing the short-term targets for key altcoins, Subburaj wrote, “Upside: Ethereum ($2,650), BNB ($320), Solana ($106), Cardano ($0.61), and Polygon ($0.96). Support: Ethereum ($2,480), BNB ($300), Solana ($95), Cardano ($0.53), and Polygon ($0.87).”

In other news, Ethereum co-founder Vitalik Buterin proposed an increase in the network’s gas fees by 33 per cent last evening. This move would raise the network's transaction capacity and could reduce fees for end-users, but could increase operational costs for validators. As a reaction from the markets to this news, ETH witnessed a slight sell-off. However, ETH continues to trade at over $2,600. Additionally, Circle Internet Financial, the company behind the USDC stablecoin, has submitted a request to offer its shares to the public, marking its initial public offering (IPO).

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Published January 12th, 2024 at 10:06 IST

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