Bitcoin to Reject $9k and Higher Levels?
The Bitcoin (BTC) price seems to be en route to beat a key resistance level at $8,250. That would leave it available for testing $9,000 and levels higher than that. However, the weekly close under $8,500 might leave it vulnerable for an extreme pullback.
In addition to that, they consider a weekly close in short-term trading an essential element that plays a factor in the way the following week reacts. During unrestingly periods, a weekly close usually indicates the price trend of Bitcoin for many weeks that comes next.
Before the weekly close on January 13, famous cryptocurrency trader Jacob Canfield noted the importance of surpassing $8,500 and closing over it.
He stated, “While I would love to see #Bitcoin reach $50,000, I remain pragmatic and unbiased in my market view High time frames are still showing lower highs and RSI in a transition zone.”
In Canfield’s opinion, he needs to see a weekly close over $8,500 or higher.
Then, on lower timeframes, the most famous crypto tried to break out of the $8,400 level three times in the past week. And all of the failed tests and the relatively week closing of the weekly candle suggests that BTC is not ready to test over $9,000 in the short-term.
On the 4H, Bitcoin also displayed a steep rejection at $8,180. This is a level it kept since January 11. Also, bearish outlook on the BTC market arrives after nearly two weeks of bullish sentiment. And technical indicators are indicating an extended rally is imminent.
Altcoins on the Decline
More on crypto news, major altcoins like Ethereum and Bitcoin Cash began to drop against the U.S. dollar following a tough week deeply.
For instance, Bitcoin Cash recorded a 21.5 percent gain in a week. It declined by 3 percent on the day from about $271 to $262. Also, Ethereum fell from $147 to $143. Moreover, this happened despite having big buy walls on major cryptocurrency exchanges.
The fall in the momentum of altcoins after an explosive week means that investors are becoming aware of the short-term trend of Bitcoin and other major cryptocurrencies.
Moreover, the altcoin, during the past three weeks, has followed the price trend of BTC. And this typically occurs during a bearish trend.
Crypto Derivatives Exchange FTX
On January 11, cryptocurrency derivatives exchange FTX has launched Bitcoin options trading.
In a tweet, FTX CEO Sam Bankman-Fried stated that they listed options on the trading platform. Also, he believed that options trading volume on the exchange hits $1 million in just around 2 hours.
The announcement did not specify which crypto assets are in the options they launched on the platform. The website only showed Bitcoin-related options.
Based on VoinGecko, FTX is the eighth top crypto assets exchange when it comes to volume. And it has traded $277.8 million in the past day.
In early 2019, they founded FTX, providing professional derivatives products. And these include quarterly and perpetual contracts on various crypto assets, leverage tokens, and over-the-counter (OTC) services.
Furthermore, the trading platform has recently seen investment from crypto exchange Binance.