Bitcoin

Material

Grayscale Bitcoin Trust

Rekt

Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>) tapped two-week highs on Jan. 30 as traders warned of thinning order book liquidity.
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 <img src="https://s3.cointelegraph.com/uploads/2024-01/b1e87f29-5724-4ef4-b425-fd19975490e2.png" alt="" title="">
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 BTC/USD 1-hour chart. Source: TradingView
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<h2 data-ct-non-breakable="true" id="analysis-bitcoin-has-nearby-support">Analysis: Bitcoin has nearby support</h2>
Data from <a href="https://subscription.cointelegraph.com/">Cointelegraph Markets Pro</a> and <a href="https://www.tradingview.com/symbols/BTCUSD/?exchange=BINANCE" target="_blank" rel="noopener nofollow">TradingView</a> showed BTC price gains taking the market to $43,853 on Bitstamp.
A subsequent consolidation then set in, with $43,500 a focus at the time of writing after the Wall Street open.
Bitcoin thus capitalized on a change of tact since the weekend, now <a href="https://cointelegraph.com/news/bitcoin-weekly-close-analyst-20-btc-price-dip-over">up over $5,000 versus the two-month lows</a> seen previously.
As <a href="https://cointelegraph.com/news/gbtc-outflows-drop-bitcoin-exchanges-btc">Cointelegraph reported</a>, the improvement came in tandem with significantly reduced outflows from the Grayscale Bitcoin Trust (GBTC), one of the newly launched spot Bitcoin exchange-traded funds (ETFs).
Now, however, bulls faced stiff resistance at $43,800 as part of an intraweek range.
<blockquote class="twitter-tweet">
 <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> There we have it Bitcoin revisited the ~$43800 Range High resistance At this time, Bitcoin is forming a new Lower High to the early January candle-bodied highs, something that was discussed in yesterday's newsletter<a href="https://t.co/gCHDo9kuL1">https://t.co/gCHDo9kuL1</a><a href="https://twitter.com/search?q=%24BTC&amp;src=ctag&amp;ref_src=twsrc%5Etfw">$BTC</a> <a href="https://twitter.com/hashtag/Crypto?src=hash&amp;ref_src=twsrc%5Etfw">#Crypto</a> <a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> <a href="https://t.co/VorsAsoGzN">https://t.co/VorsAsoGzN</a> <a href="https://t.co/jRwV6G684m">pic.twitter.com/jRwV6G684m</a>— Rekt Capital (@rektcapital) <a href="https://twitter.com/rektcapital/status/1752286832971350320?ref_src=twsrc%5Etfw">January 30, 2024</a>
</blockquote> 
“Trying hard to invalidate its Weekly Bearish Divergence (which arguably already played out on last week’s dip),” popular trader and analyst Rekt Capital <a href="https://twitter.com/rektcapital/status/1752303083743318279" target="_blank" rel="noopener nofollow">wrote</a> in part of the day’s posts on X (formerly Twitter).
Popular trader Skew warned that serious buyer conviction was still needed for a rematch with range highs at $48,000 seen earlier in January.
“Price has found much thicker ask depth here implying more supply overhead which affects taker flow &amp; will require pretty high volume buying to take place into price for price to test $48K +,” he <a href="https://twitter.com/52kskew/status/1752274415268802601" target="_blank" rel="noopener nofollow">told</a> X subscribers.
<blockquote data-ct-non-breakable="true">
 “Bids are so far are pretty thin on the orderbook except for $42K &amp; $40K, below $38K is thick bid depth.”
</blockquote>
Continuing on the topic of liquidity, trading resource Material Indicators noted an absence of bids directly below the spot price — potentially opening up the path to downside.
“Much of this move since Friday has been choreographed anticipating Wednesday’s FED announcement and BTC Monthly candle close,” part of an X analysis <a href="https://twitter.com/MI_Algos/status/1752317874671059420" target="_blank" rel="noopener nofollow">explained</a>.
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 “With thinning bid liquidity below us, don’t be surprised if we see this move retrace itself.”
</blockquote>
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 <img src="https://s3.cointelegraph.com/uploads/2024-01/008e1d20-fb9a-49d8-aa8d-45d7108fde33.png" alt="" title="">
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 BTC/USDT order book liquidity for Binance. Source: Material Indicators/X
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Material Indicators referred to the United States Federal Reserve’s decision on benchmark interest rate changes due on Jan. 31.
<h2 id="spotlight-on-fed-s-powell-for-btc-price-shift">Spotlight on Fed’s Powell for BTC price shift</h2>
Material Indicators co-founder Keith Alan, meanwhile, suggested that the week’s landscape could provide a perfect storm for crypto volatility.
Related:&nbsp;<a href="https://cointelegraph.com/news/btc-price-yearly-open-fomc-5-things-bitcoin-this-week">BTC price at yearly open into FOMC — 5 things to know in Bitcoin this week</a>
While he was “not expecting” a surprise at the rates meeting, he said in a video update on the day, the Fed’s commentary on the economy combined with the lack of liquidity could provide Bitcoin traders with a headache.
All eyes were on Fed Chair Jerome Powell’s speech and press conference.
“He might telegraph that things are changing a little bit and he may say that perhaps the Fed’s not going to cut as soon or as deeply as the market may expect — and that obviously creates some opportunity for some volatility,” he commented.
<blockquote class="twitter-tweet">
 GM, Here's another quick <a href="https://twitter.com/hashtag/BTC?src=hash&amp;ref_src=twsrc%5Etfw">#BTC</a> Analysis video for ya.<a href="https://twitter.com/hashtag/Bitcoin?src=hash&amp;ref_src=twsrc%5Etfw">#Bitcoin</a> has managed to clear some strong technical resistance on the Daily chart, but <a href="https://twitter.com/hashtag/FireCharts?src=hash&amp;ref_src=twsrc%5Etfw">#FireCharts</a> shows bid liquidity is thinning. While a continuation of the up trend is possible, Wednesday's <a href="https://twitter.com/hashtag/FED?src=hash&amp;ref_src=twsrc%5Etfw">#FED</a> rate hike decision and… <a href="https://t.co/NYDjS5qw9K">pic.twitter.com/NYDjS5qw9K</a>— Keith Alan (@KAProductions) <a href="https://twitter.com/KAProductions/status/1752344176102952992?ref_src=twsrc%5Etfw">January 30, 2024</a>
</blockquote> 
Per data from CME Group’s <a href="https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html" target="_blank" rel="noopener nofollow">FedWatch Tool</a>, the odds of rate decreases beginning in March at the next Fed meeting stood at just under 40% at the time of writing.
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 <img src="https://s3.cointelegraph.com/uploads/2024-01/fb74b2d8-e804-4d1e-9dbc-2c530c232b44.png" alt="" title="">
 <figcaption style="text-align: center;">
 Fed target rate probabilities. Source: CME Group
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This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.

Bitcoin traders dismiss BTC price 2-week highs amid new liquidity drop

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