Bitget App
Trade smarter
Buy cryptoMarketsTradeFuturesEarnSquareMore
Bitcoin traders see breakout as bulls cling to $44K in ETF countdown

Bitcoin traders see breakout as bulls cling to $44K in ETF countdown

CointelegraphCointelegraph2024/01/07 11:11
By:William Suberg

Bitcoin ( BTC ) focused on $44,000 into its first weekly close of 2024 as multiple new volatility catalysts lined up.

Bitcoin traders expect end to rangebound moves

Data from Cointelegraph Markets Pro and TradingView showed narrowing volatility in BTC price performance over the weekend.

markets remained nervous as to how BTC/USD might react to the approval or denial of the United States’ first spot Bitcoin exchange-traded fund (ETF) — a decision due by Jan. 10 .

As Cointelegraph reported , the seminal event is widely predicted to deal a temporary blow to bulls in the form of a BTC price retracement in a “sell the news” event. Others see a chance for knee-jerk upside potentially challenging key psychological levels.

Regardless of which direction the move might take, indicators nonetheless pointed to a breakout from the narrow intraday range.

Among them was the Bollinger Bands volatility indicator, now narrowing on daily timeframes in a classic precursor to range expansion.

“Bollinger Bands tightening even more heading into ETF week,” trader and commentator Matthew Hyland told subscribers on X (formerly Twitter) overnight.

Fellow trader Daan Crypto Trades added that the so-called “spot premium” was once again active on Bitcoin markets, with derivatives traders seemingly wary of going long or short after last week’s snap liquidations.

#Bitcoin Spot premium has returned since the most recent flush.

It's trading at a higher premium than prior to the push into $40K.

Feels mostly like people afraid to long and just generally overleveraged longs that got flushed out hard recently. pic.twitter.com/E7iocINH5L

— Daan Crypto Trades (@DaanCrypto) January 7, 2024

“The longer we range around this price area the more positions will build up with stop losses/liquidations sitting above and below price,” he continued alongside a heatmap of leveraged BTC/USDT liquidity on largest global exchange Binance.


Bitcoin ETF overshadows inbound U.S. CPI, PPI data

While attention remained focused on the ETF, macroeconomic hurdles were waiting in the wings.

Related:  March banking crisis rerun risks 40% Bitcoin price crash — Arthur Hayes

These were in the form of U.S. inflation data, with the December prints of both the Consumer Price Index (CPI) and Producer Price Index (PPI) due in the coming days.

Traditionally a source of short-term volatility for crypto and risk assets in their own right, the data releases would ostensibly need to show inflation continuing to subside.

As Cointelegraph reported, the key result of this — the Federal Reserve “pivoting” on interest rate policy — is not currently expected to occur at its next dedicated meeting at the end of the month.

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.

0
0

Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

PoolX: Earn new token airdrops
Lock your assets and earn 10%+ APR
Lock now!

You may also like

From yen rate hikes to mining farms shutting down, why is bitcoin still falling?

The recent decline in bitcoin prices is primarily driven by expectations of a rate hike by the Bank of Japan, uncertainty regarding the US Federal Reserve's rate cut trajectory, and systemic de-risking by market participants. Japan's potential rate hike may trigger the unwinding of global arbitrage trades, leading to a sell-off in risk assets. At the same time, increased uncertainty over US rate cuts has intensified market volatility. In addition, selling by long-term holders, miners, and market makers has further amplified the price drop. Summary generated by Mars AI This summary was generated by the Mars AI model, and the accuracy and completeness of its content are still being iteratively updated.

MarsBit2025/12/16 04:27
From yen rate hikes to mining farms shutting down, why is bitcoin still falling?

The Economist: The Real Threat of Cryptocurrency to Traditional Banks

The crypto industry is replacing Wall Street's privileged status within the American right-wing camp.

ForesightNews 速递2025/12/16 04:23
The Economist: The Real Threat of Cryptocurrency to Traditional Banks

Grayscale's Top 10 Crypto Predictions: Key Trends for 2026 You Can't Miss

The market is transitioning from an emotion-driven cycle of speculation to a phase of structural differentiation driven by regulatory channels, long-term capital, and fundamental-based pricing.

BlockBeats2025/12/16 03:57
Grayscale's Top 10 Crypto Predictions: Key Trends for 2026 You Can't Miss

From Yen Interest Rate Hike to Mining Farm Shutdown, Why Is Bitcoin Still Falling

The market is down again, but this may not be a good buying opportunity this time.

BlockBeats2025/12/16 03:55
From Yen Interest Rate Hike to Mining Farm Shutdown, Why Is Bitcoin Still Falling
© 2025 Bitget