Cointelegraph Team
Cointelegraph
Bitcoin (BTC) rebounded strongly from $41,000 during Jan. 20 as bears hoping for a step into lower territory stayed disappointed.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
Data from Cointelegraph Markets Pro and TradingView showed BTC/USD adding $1,000 after dipping to near the $41,000 mark for the first time since Jan. 11.
In what could be a temporary reprieve, Bitcoin nonetheless stayed rangebound, with no noticeable attacks on resistance — behavior all too familiar for spot traders in recent days.
"Good bounce from Bitcoin, but I'd be happier if we reclaim $42.4K region," Cointelegraph contributor Michaël van de Poppe summarized in his latest Twitter update.
In a previous post on the day, Van de Poppe highlighted $38,000 as an "ultimate" line in the sand that needs to hold should a fresh breakdown occur.
"The ultimate test for Bitcoin is the area between $38-40K. Holding there would confirm buyers stepping in + bullish divergence for a reversal," he added.
Others were confident in the market's current strength, given a similiar bounce on U.S. stocks prior to the Wall Street open.
Earlier, Cointelegraph reported on forecasts for Bitcoin relative to stock market performance, with well-known analyst Mike McGlone of Bloomberg Intelligence predicting that the broader correlation between crypto and equities would continue through this year.
Nonetheless, another topic of interest this week focuses on a divergence in performance between Bitcoin and the Nasdaq, with proponents hoping that BTC would definitively "decouple" from the index's downward trend.
Ethereum follows Bitcoin closer to major support
On altcoins, only Terra's LUNA token was able to stand out from sideways action on the day, up 7% and above $80.
Ether (ETH), the largest altcoin by market cap, shed 1.2% in the 24 hours to the time of writing, slowly drifting back towards $3,000.
ETH/USD 1-hour candle chart (Bitstamp). Source: TradingView
In his latest YouTube update, Van de Poppe gave a target of $2,800 for a short-term floor on ETH/USD, noting that its relative strength index was apt to provide a "bullish divergence" for price in the coming days.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.
Recommended Content
Editors’ Picks
LUNC trends among traders alongside Dollar pegged stablecoin USTC, recovery likely
Terra Classic USD and Terra Luna Classic tokens are trending among market participants after overnight price gains. USTC rallied to $0.078 local top after its 2022 collapse, garnering hope among traders.
LooksRare price recovery has wings and could double again as profit-hungry investors migrate from BLUR
After Blur’s 300% rally, the next NFT token that has grabbed traders’ attention seems to be LooksRare’s LOOKS altcoin. LOOKS price has rallied 12% in the last nine hours and shows promising signs of continuing this uptrend.
Dogecoin price might recover losses if volume picks up
Dogecoin wallet addresses with a non-zero balance climbed to 5.11 million. DOGE active addresses, and volume increased alongside price gains, supporting a bullish outlook.
Bitcoin price sees flat performance as correlation with equities is on the rise
Bitcoin price performance turned flat in the last two weeks as BTC entered a tight correlation with equities. BTC valuation model reveals Bitcoin price is unlikely to drop below $35,000 apart from short-term volatility.
Three key BTC accumulation levels before ETF approval in January 2024
Bitcoin, from a high time-frame perspective, has been in an up-only trend since the start of 2023. BTC has ignored many sell signals due to the likelihood of an Exchange-Traded Fund approval. With the holidays around the corner, falling liquidity could see BTC discounted from its current level, hovering around the $37,000 region.