Bitcoin (BTC) set new multi-month lows on Jan. 24 as the new week began with some classic price behavior.
“Rangeplay” for BTC after CME gap fill
That level represented the start of a CME futures gap left over from July 2021, Bitcoin “filling” it almost to the dollar before reversing upwards to add over $1,000 in minutes.
With volatility clearly in the air, expectations were running high for the start of trading on United States equities markets.
Weekends are scams. (Low volume markets)
— Adam Back (@adam3us) January 23, 2022
“Now, Bitcoin will fight $34.1K–$34.4K. If that reclaims, potential test at $38K possible,” Cointelegraph contributor Michaël van de Poppe summarized to Twitter followers, noting the CME gap closure.
“Rangeplay at this point.”
At the time of writing, BTC/USD traded just below $34,000, with around an hour and a half until the U.S. open.
Zooming out, investor behavior meanwhile appeared to counter concerns over short-term sellers. As noted by investor and entrepreneur Alistair Milne, the proportion of the Bitcoin supply that has remained stationary for a year or more hit levels not seen during previous capitulation events.
The % of #Bitcoin unmoved for 12 months or more just hit 60%
… which is higher than after the March 2020 COVID crash
… higher than at the end of the 2015/16 bear market
… higher than at the end of the 2018/19 bear market
— Alistair Milne (@alistairmilne) January 24, 2022
Even beating the 2018 bear market bottom, when Bitcoin reached $3,100 after a drawdown of over 80%, current resolve among long-term investors was thus palpable.
HODL Waves data from on-chain analytics firm Glassnode confirmed the presence of active hodlers.
Ether attracts $1,800 bid target
The situation looked bleaker for major altcoins on the day, as Ether (ETH) shed almost 11% to near $2,000.
The largest altcoin by market cap was not alone in its precipitous fall, the top 10 led by Solana (SOL), down almost 18% at the time of writing.
For popular trader and analyst Pentoshi, bid levels to watch now lay below $2,000 support — more than 60% under recent all-time highs