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Yesterday I touched on the markets, but today I want to dig deeper before the inauguration.
The good news is that there is some positive data that supports the hypothesis that Bitcoin could see positive momentum after January 20th.
K33 analysts noted that trading volumes rose 51% over the past week, with average daily trading volume reaching $4.3 billion.
“Activity levels were exceptionally high amid the massive influx and recovery (on Monday), with spot market volumes reaching $6.5 billion, the highest daily spot volume since December 20. The high volume and sharp recovery suggest there are many willing buyers amid the Bitcoin price decline.” to less than $90,000, which they said was “a promising look at the road ahead.”
Now I will present the next piece of data without much explanation because I am not sure about it He can Explaining it is really beyond theorizing. K33 noted that January 13 was the most volatile day since early December, with the gap between daily returns and intraday volatility “the highest level ever recorded in Bitcoin.”
The easiest explanation is potential profit taking, perhaps Prepare for tax season.
This brings me to this interesting nugget: “Prices have seen another strange pattern over the past week, with 14 consecutive green hourly flat candles appearing for the first time in Bitcoin history, making the past week unique through several lenses.”
All of this may mean that January 20 is not an event to sell news after all, which was previously a possibility.
Going back to early December, K33 analyst Vettel Lund thought we could see Bitcoin peaked on January 17ahead of the inauguration, which would set it up for selling pressure when President-elect Donald Trump is sworn in again.
However, it is no surprise that Bitcoin marches to the beat of its own drum and much of what I have written and explained. I talked about it For the past month it no longer matters. Don't worry, I won't take it personally.
K33 noted that the current setup is “rigged for unpredictability” which means we could all be in for a bumpy ride over the next few days.
“The overall sensitivity to interest rates over the past month suggests an increased importance of Wednesday's CPI reading. Additionally, notable Trump momentum may continue to build in the days leading up to the inauguration. At current levels, we have canceled our plan to sell the inauguration. However, “Given the price-driven nature of the plan, tactical de-risking could regain its appeal if prices rise significantly closer to the open,” the analysts wrote.
We are not out of the woods yet, and we all need to be careful. But hey, at least it doesn't look like we've reached the peak yet... right?
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