Bitcoin sells off after hitting a resistance of $ 44,000

Bitcoin is down more than 2% from the local January 13th high. Data from TradingView has shown a retracement of $ 1,500 in BTC / USD after the pair hit a high of $ 44,450.

Source: TradingView

A new sign that range activity for Bitcoin remains unchanged on the day, the bulls are frustrated after several relatively slight pullbacks towards $ 46,000.

For analyst Scott Melker, “there is still no clear indication of where the journey should go”. He noted that Bitcoin hit lows when it fell below $ 40,000 earlier in the week, which is also in line with his prediction.

https://twitter.com/scottmelker/status/1481591806567534595?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
Daan Crypto Trades Twitter account continues to highlight $ 45,700 as a key upside target to flip resistance / support.

“The $ 45.7K level is the next area of ​​interest on my radar. It’ll be the key to the cops. Bitcoin looks great on the LTF, but much remains to be done on the HTF to confirm a proper reversal. “

https://twitter.com/DaanCrypto/status/1481567417071542272?ref_src=twsrc%5Etfw” target=”_blank” rel=”nofollow noopener
Others are hoping for a paradigm shift in the medium term.

“In the coming days and weeks, BTC could uncover a new market structure, in which case it is worth paying attention,” predicts the retailer Rekt Capital.

Options market

New research also suggests why $ 40,000 was short-lived and $ 44,000 later became a zone of resistance.

According to the crypto trading company QCP Capital, the decisive factor lies in the options market, which has now become significant enough to have a “significant impact” on BTC price developments.

For example, a major reason Bitcoin and ETH are not tracked below $ 40,000 and $ 3,000, respectively, could be because a number of key players have exercise prices near those levels. They create support, of course, when they bid on positions to act on. And when they take profits on these option positions, the positive impact on the market is also evident.

In addition, an avid options player who bought 42,000 calls in January took profits around $ 44,000, which of course led to some resistance. ”

Coinglass data shows that open interest in options in 2021 is still far from its all-time highs.

Source: Coinglass

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Disclaimer: This article is for informational purposes only, not investment advice. Investors should research carefully before making a decision. We are not responsible for your investment decisions.

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