Breaking the Chains: Bitcoin’s Surprising Resurgence at $43K Amidst Coinbase and GBTC Turbulence

Estimated read time 2 min read
  • Bitcoin’s price, showing resilience, climbed above $43,000 despite recent Coinbase and GBTC selling pressures, rebounding from a post-spot BTC ETF approval sell-off.
  • Additionally, altcoins gained momentum as Bitcoin dominance slipped, hinting at a potential shift in market dynamics.

Bitcoin’s price has shown remarkable resilience, climbing above $43,000 on January 15, despite recent setbacks linked to the approval of spot BTC exchange-traded funds (ETFs) on January 10. The cryptocurrency market attempted to rebound from the sell-off, with BTC hovering around $43,100 at the time of writing, marking a 0.89% increase for the day.

Last week, efforts to push Bitcoin above $50,000 were halted at $49,000, indicating challenges for buyers in sustaining higher price levels. A daily price chart revealed that Bitcoin had stalled below $44,000, experiencing a 1.05% downturn in two hours after briefly exceeding $43,000.

Analysts, including popular trader Skew, noted that BTC’s spot markets encountered resistance around $43,000, with an observed increase in ask liquidity above the prevailing price. The ongoing recovery was attributed to Grayscale Bitcoin Trust (GBTC) selling, leading some traders to view the dip as a buying opportunity.

Cointelegraph’s head of markets, Ray Salmond, commented on recent price action, stating that traders responded to ETF selling by opening short positions. However, he acknowledged that the selling pressure might result in a short-term bearish scenario, potentially pushing the price down. Despite the bearish sentiment, there is optimism that the uptrend could continue toward the mid-$50,000 range.

As Bitcoin struggled to break out of the $41,500 to $43,000 range, analyst Mac suggested a possible retracement to $40,000 and even $38,000. The market’s uncertainty leaves open the possibility of either a decline from $45,000 to $40,000 or a sideways movement followed by a drop to $40,000.

In addition to Bitcoin’s challenges, market expert Michaël van de Poppe highlighted a decline in Bitcoin dominance from 54.56% to 49.82% in just a week. He suggested that Bitcoin’s dominance may have peaked before the halving, signaling a potential cycle top. Altcoins are expected to outperform in the coming period, with traders likely reallocating capital to alternative cryptocurrencies, especially with the prospect of an Ether ETF now on the horizon.

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