The price once again exceeded $40,000 and the upward volatility allowed it to return to $42,000. The bulls regain control of the price this weekend.
Traders have been waiting for the approval of Bitcoin Spot ETFs and they are now validated. The next expected event for cryptocurrency enthusiasts is the Bitcoin halving, but some miners find themselves in a delicate situation. In fact, 11 miners would be below the profitability threshold. Despite waning enthusiasm, buyers are fighting to hold on to $40,000.
Bitcoin Price Rises 4% in 24 Hours
Buyers decided to wake up at the end of the week, much to the delight of cryptocurrency enthusiasts. In fact, the price of Bitcoin maintains the psychological round number of $40,000 and shows an increase of 4% in 24 hours.
In a week the course is back to balance. Despite everything, in one month, the course shows a drop of more than 3%. The BTC/ETH pair regains strength. she rises 2% in 24 hours from 10% in a week.
Bitcoin (BTC) is trading today, January 27, at US$41,744.43, according to the Live Coin Watch portal. This price positions it 104% compared to its value 24 hours ago and 100% compared to the same day last week. The token’s current dominance (market capitalization) is US$818,608,500,180.
Bitcoin Volatility Evolves Up Like During Bull Markets
Volatility is a very present element in the cryptocurrency sector. Some will say that cryptocurrencies are too volatile. Others will say that this volatility allows for very interesting action. Whatever happens, it is a factor to take into account in your trading or your investment.
Volatility showed a bearish dynamic (downhill troughs and peaks) since the end of the 2021 bull run and it seems that the situation is changing.
Historically, volatility tends to fall during bear market phases. We notice a drop in this metric in 2018 and 2022. On the contrary, volatility increases during bull markets. This phenomenon occurred especially in 2020-2021 or in 2017. Currently we can observe that the curve draws valleys and ascending peaks, a situation reminiscent of previous bull markets. These are good news a few months away from the Bitcoin Halving.
Bitcoin Price Could Hit $44,000 Resistance
BTC has managed to return to the range between $40,500 and $44,000 in 4H. Thus, the course has marked a deviation below the bottom of the range.
When the course of an asset marks a deviation and re-enters a range, it tends to go to the opposite terminal. In this case, the price could return to the resistance level at $44,000. This will require getting rid of the resistance at $42,000.
On the other hand, in case of rejection of $42,000, the price could return to the support level at $40,500. It will then be necessary to defend this support to avoid continuing the bearish momentum. The RSI bounces, but clear bullish momentum will need to be found so that buyers can take advantage of the momentum.
The price of Bitcoin is recovering volatility and the situation resembles the beginnings of bull markets. Technically, buyers were able to react to hold on to $40,000. In fact, the price is around $42,000.
From now on, we will have to break the resistance of $42,000 in order to find $44,000. The exchange token sector has suffered from the recent Bitcoin crash, but overall is showing solid momentum. They could take advantage of this to start rising again if BTC manages to hold $40,000.
By Audy Castaneda
