- The Bitcoin price continues to be volatile and stands at $37,245 at the time of writing.
- Experts are divided on whether Bitcoin will continue its bull run or whether there will be a correction to as low as $29,000.
Bitcoin continues to move sideways and shows high volatility. Within the last 24 hours, the price recorded a gain of 2.74%, to a price of $37,245. The market capitalization has risen to USD 685 billion and Bitcoin dominance has slightly increased again to 66.27%.
I agree here 👀
Would make sense for bitcoin to:
— NFTeddy (@TeddyCleps) January 19, 2021
“Jonny Moe”, on the other hand, predicts that Bitcoin has almost finished the consolidation phase and after that it could test the $50,000 mark in the next few months. In his opinion, only after reaching this psychologically important mark will a strong correction follow, during which Bitcoin could fall in price by up to 50%, causing a major wave of panic selling.
This is a very promising curl up attempt for $BTC.
I'm still skeptical we've had enough of a consolidation/pullback period, but can't argue with the chart.
Maybe we need to go test $50k before the larger pullback. Large psychological numbers matter. pic.twitter.com/ko3iJayglb
— Jonny Moe (@JonnyMoeTrades) January 18, 2021
“CRYPTO₿IRB”alsodescribes that Bitcoin will continue to rise in 2021 as fundamentals remain bullish. He believes a price rise to $50,000 by the middle of the year is realistic, but Bitcoin will first need to crack the strong resistance along the $42,000 level to do so. Ethereum could also reach a new all-time high in the coming weeks and could even rise more than Bitcoin, according to the analyst.
— CRYPTO₿IRB (@crypto_birb) January 18, 2021
“Cantering Clark” also states that Ethereum has a stronger upside and could soon crack the former all-time high of USD 1,450. In his opinion, more and more institutional investors will enter Bitcoin and Ethereum, acting as a catalyst to push prices higher.
ETH pulling BTC up.
Could see a big move here.
— Ryan 🐎 Cantering Clark (@CanteringClark) January 19, 2021
In turn, professional trader “Salsa Tekila” has sold all his Bitcoin at $37,100 and expects the price to fall again in the price range between $34,000 and $29,000. According to him, Bitcoin can attract new buyers only after this correction and target a new all-time high far from the $42,000 mark.
Cryptoquant CEO Ki Young Ju also expects a correction, as according to his data, some well-funded investors have transferred large amounts of BTC to Coinbase and may sell their holdings in the coming days. He advises his followers to be vigilant as this is a good entry point to buy bitcoin cheaply.
Fund managers are investing more in bitcoin
UK-based fund manager Ruffer Investment revealed that their Bitcoin positions are up 90% at this point. This means that the investment giant has been buying bitcoin below the $20,000 mark. The company still owns 4009 shares of MicroStrategy and 350,000 shares of Galaxy Digital. While these shares have outperformed Bitcoin by 10%, MicroStrategy’s shares have only risen sharply after CEO Michael Saylor instructed it to buy $1.2 billion worth of Bitcoin.
Bitcoin extends correction as Ethereum sees ‘picture perfect’ rejection at all-time highs
Bitcoin (BTC) stayed closer to $60,000 on Oct. 22 after the largest altcoin Ether (ETH) failed to cement new all-time highs.
BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView
ETH all-time high? Blink and you’ll miss it
Data from Cointelegraph Markets Pro and TradingView ETH/USD just match its record $4,380 on Bitstamp before seeing a harsh rejection.
Traders watched in anticipation as Ethereum appeared to follow Bitcoin to historic new levels, only to face immediate resistance and fall sharply back into a lower range.
Trader and analyst Rekt Capital called the event a “picture perfect rejection.”
At the time of writing, ETH/USD circled $4,150, preserving $4,000 as support with the exception of a flash dip which immediately followed the all-time high rematch.
ETH/USD 1-day candle chart (Bitstamp). Source: TradingView
Against Bitcoin, Ethereum fared better, with the ETH/BTC pair having bounced near lows last seen in late July.
Bitcoin could see “additional topside euphoria”
Having similarly failed to hold significantly higher levels, Bitcoin itself took an extended break as overheated markets cooled their excitement.
Funding rates were returning to normal on Friday, having reached a state reminiscient of the blow-off top from April.
Bitcoin funding rates chart. Source: Bybt
As with open interest, however, these were not as frenzied as the Q2 rush, which produced the $64,900 all-time high in place until this week.
“This means there is possibly still room for additional topside euphoria but we are at levels that are starting to stretch the market,” crypto trading firm QCP Capital commented in its latest market update.
Bitcoin Forecast and Analysis BTC/USD October 22, 2021
BTC/USD are trading at 64619 and continue to move as part of the correction and the bullish channel. Bitcoin cryptocurrency capitalization at the time of the publication of the forecast is $1,194,342,792,891. Moving averages indicate a short-term bullish trend for Bitcoin. Prices went up from the area between the signal lines up, which indicates pressure from buyers of ”Digital Gold” and a potential continuation of the rise in the value of the asset already from the current levels. As part of the cryptocurrency rate forecast for tomorrow, October 22, 2021, we should expect an attempt to develop a decrease in the value of a digital asset and a test of the support level near the 57505 area. Where again should we expect a rebound and an attempt to raise the Bitcoin rate with a target above the 74055 area.
Bitcoin Forecast and Analysis BTC/USD October 22, 2021
An additional signal in favor of the growth of BTC/USD quotes will be a test of the rising trend line on the relative strength index (RSI). The second signal in favor of this option will be a rebound from the lower border of the bullish channel. Cancellation of the growth rate and value of Bitcoin will be a fall in the value of the asset and a breakdown of the area of 52205. This will indicate a breakdown of the support area and a continuation of the fall in the Bitcoin rate with a potential target at 42055. Confirmation of the rise in the price of the asset will be a breakdown of the resistance area with the price fixing above the level of 69205.
Bitcoin Forecast and Analysis BTC/USD October 22, 2021 suggests an attempt to test the support level near the 57505 area. And further, the cryptocurrency will continue to grow with a potential target at 74055. An additional signal in favor of the Bitcoin rate rise will be a test of the support line on the relative strength index (RSI). Cancellation of the cryptocurrency growth option will be a fall and a breakdown of the 52205 area. This will indicate a continued fall with a potential target below the 42055 area.
Bitcoin Price Flash Crashes for Second Time in a Month in the US
The price of bitcoin (BTC) on Binance.US, the US-based exchange affiliated with Binance, briefly crashed to as low as USD 8,200 today – a drop of 87% – before recovering again. The crash marks the second time in a month when bitcoin prices in the US have briefly disconnected from the rest of the world.
Today’s flash crash, which was one of the most significant on a major exchange in bitcoin’s history, all happened within less than 1 minute, the BTC/USD price chart from Binance.US showed.
Although the flash crash was all over within a minute, the trading volume showed that a significant number of coins did change hands during the crash, indicating that some traders may have been able to fill orders for bitcoin at extremely low prices.
Flash crashes can happen when large market sell orders are sent to exchanges without sufficient liquidity on its order books, for instance, because a large trader accidentally placed the order as a market order instead of a limit order.
Today’s flash crash on Binance’s US exchange is the second such incident in a month in the US. On September 20, a data feed for crypto prices called Pyth that is used by some of the largest financial institutions on Wall Street showed a 90% crash in the price of bitcoin.
The feed briefly showed bitcoin at a price of USD 5,402. However, a similar price crash was nowhere else to be seen. Two days later, in a report about the incident, Pyth concluded that the abnormally low price was indeed a technical glitch, “caused by the combination of (1) two different Pyth publishers publishing a near-zero price for BTC/USD and (2) the aggregation logic overweighting these publishers’ contributions.”
Discussing today’s incident on Twitter, many traders complained about being forced by US regulations to use exchanges such as Binance.US, which has thin order books and low liquidity compared to the international version of the exchange.
No statement has yet been made from Binance or Binance US regarding today’s flash crash.
At 16:11 UTC, BTC trades at USD 63,180 and is down by almost 6% in a day, trimming its weekly gains to 10%.