• Home
  • Cryptocurrency
  • Blockchain
  • Analysis
  • News
    • Regulations Security
    • Getting Started
  • Insights
    • Opinion
    • Expert Interview
  • All Posts
Facebook X (Twitter) Instagram
Trending
  • KiloEx Exchange Exploiter Restores All Stolen Funds Following $7.5 Million Hack
  • Hashkey Targets XRP ETF in Asia with New Fund Supported by Ripple
  • Sygnum Predicts Potential Altcoin Rally in Q2 2025 Due to Enhanced Regulations
  • Media Tycoon Files Counterclaim Against Justin Sun in $78 Million Sculpture Dispute
  • Yemenis are embracing DeFi in response to US sanctions on the Houthi group
  • Saylor and ETF Investors’ ‘Stronger Hands’ Contribute to Bitcoin Stabilization — Analyst
  • Bitcoin Dip Buyers Show Interest at BTC Range Lows, Yet Remain Risk-Averse Until $90K Establishes Support
  • Kyrgyzstan’s President Enacts CBDC Legislation Granting Legal Status to ‘Digital Som’
Facebook X (Twitter) Instagram
CoinovelCoinovel
  • Home
  • Cryptocurrency
  • Blockchain
  • Analysis
  • News
    • Regulations Security
    • Getting Started
  • Insights
    • Opinion
    • Expert Interview
  • All Posts
CoinovelCoinovel
Home » Bitcoin traders express their perspectives on BTC’s recent price vulnerability
Bitcoin traders express their perspectives on BTC's recent price vulnerability
Bitcoin traders express their perspectives on BTC's recent price vulnerability

Bitcoin traders express their perspectives on BTC’s recent price vulnerability

0
By admin on 2025-01-12 Cryptocurrency

Bitcoin’s price fluctuation dominated the past week as the crypto and equities markets reacted to new US economic data and a sudden increase in Treasury yields, resulting in a sharp correction in BTC price, as well as the DOW and S&P 500.

Looking beyond traditional finance markets, Bitcoin’s rally above $102,500 on January 6th led technical traders to believe that the bearish head-and-shoulders pattern had been invalidated and the possibility of a dip below $90,000 had been avoided. The rising Treasury yields had a negative impact on the markets, and rumors of the US Department of Justice receiving court approval to sell $6.5 billion worth of Bitcoin seized from Silk Road further added to the bearish sentiment.

Options trader Tony Stewart tweeted his view on how intelligent traders would react to the news, stating that bears would push the narrative lower until momentum repels.

Among crypto traders, there is a unique strategy to interpret sentiment data and pending bearish events to one’s advantage. On January 9th, a national day of mourning for former US President Jimmy Carter, all traditional finance markets were closed, which reduced volumes and allowed some traders to capitalize on smaller flows. Bitcoin was already weak, creating an opportunity for traders to push prices lower while possibly buying spot coins elsewhere. The news about the DOJ and Silk Road Bitcoin liquidation approval amplified the bearish narrative, providing an opportunity to reposition in derivatives markets and capture discounted spot Bitcoin before the expected rally when President-elect Trump is inaugurated on January 20th.

Cointelegraph spoke to Brian Russ, the chief investment officer of 1971 Capital, to understand how he and his firm were digesting the news and price action. Russ stated that it is difficult to define the exact path due to various factors and the presence of many large global players in the market. He also mentioned that derivatives dominate daily flows for BTC, making it harder to manipulate the market compared to the previous cycle.

Regarding the trading volumes of TradFi-linked Bitcoin on January 6th, Russ explained that ETFs represent only about 3% of the daily average volume, so the closure of markets on that day did not have a significant impact. He also mentioned that the Silk Road Bitcoin, worth $6.5 billion, could be significant if sold all at once, but the market likely priced in those sales already.

Considering the potential for speculators to exploit light liquidity zones and bearish news headlines, Russ believes that large speculators will opportunistically move prices around key stop and leverage levels, leading to increased volatility. Traders should be prepared for short dips and set limits accordingly.

Traders generally agree that bearish crypto headlines tend to have a greater impact on price than the actual event, as markets tend to price in events once the shock of the news headline wears off. Traders use strategies like buying the dip when the DOJ coins move to Coinbase Prime, as the coins are likely already sold and just being moved.

This article does not provide investment advice or recommendations. Readers should conduct their own research before making any investment or trading decisions.

Share. Facebook Twitter Pinterest LinkedIn Tumblr Email

Related Posts

Hashkey Targets XRP ETF in Asia with New Fund Supported by Ripple

Sygnum Predicts Potential Altcoin Rally in Q2 2025 Due to Enhanced Regulations

Bitcoin Dip Buyers Show Interest at BTC Range Lows, Yet Remain Risk-Averse Until $90K Establishes Support

  • Popular
  • Latest
  • Hot comments
2022-02-23 Getting Started

Cryptopedia: Unveiling the Metaverse’s Potential to Revolutionize the Internet

2022-03-07 Getting Started

Unveiling Cryptopedia: Grasp the fundamentals of DAOs and their operational mechanisms

2022-03-25 Getting Started

Cryptopedia: Explore Web3 and its goal to revolutionize internet services

2025-04-18 Regulations Security

KiloEx Exchange Exploiter Restores All Stolen Funds Following $7.5 Million Hack

2025-04-18 Cryptocurrency

Hashkey Targets XRP ETF in Asia with New Fund Supported by Ripple

2025-04-18 Cryptocurrency

Sygnum Predicts Potential Altcoin Rally in Q2 2025 Due to Enhanced Regulations

Latest Gallery

Latest Recommendations
2025-04-18 Regulations Security

KiloEx Exchange Exploiter Restores All Stolen Funds Following $7.5 Million Hack

2025-04-18 Cryptocurrency

Hashkey Targets XRP ETF in Asia with New Fund Supported by Ripple

2025-04-18 Cryptocurrency

Sygnum Predicts Potential Altcoin Rally in Q2 2025 Due to Enhanced Regulations

2025-04-18 Regulations Security

Media Tycoon Files Counterclaim Against Justin Sun in $78 Million Sculpture Dispute

2025-04-18 Blockchain

Yemenis are embracing DeFi in response to US sanctions on the Houthi group

2025-04-18 Regulations Security

Saylor and ETF Investors’ ‘Stronger Hands’ Contribute to Bitcoin Stabilization — Analyst

2025-04-18 Cryptocurrency

Bitcoin Dip Buyers Show Interest at BTC Range Lows, Yet Remain Risk-Averse Until $90K Establishes Support

2025-04-18 News

Kyrgyzstan’s President Enacts CBDC Legislation Granting Legal Status to ‘Digital Som’

2025-04-17 Blockchain

Polygon’s Nailwal: The Jio Partnership Will Propel Real-World Web3 Adoption for 450 Million Users

2025-04-17 Blockchain

Babylon’s Total Value Locked Decreases by 32% as Wallets Unstake $1.2B in Bitcoin

2025-04-17 Regulations Security

OpenAI pursued a deal with Anysphere prior to shifting its focus to WindSurf

2025-04-17 Analysis

Bitcoin Gold’s Imitation Strategy Could Surpass $150K as BTC Remains ‘Remarkable’

2025-04-17 Cryptocurrency

AI Tokens and Memecoins Dominate Cryptocurrency Narratives in Q1 2025: CoinGecko

2025-04-17 Cryptocurrency

Four Reasons Why the Price of Bitcoin Could Surge to $90,000 in April

2025-04-17 News

Trump Criticizes Powell for Delaying Interest Rate Cuts, Calling It ‘Too Late’

2025-04-17 News

Wyoming Commission Considers Whether Stablecoin Falls Under SEC Regulations

About
About

Coinovel is an enthralling novel of cryptocurrencies. Engage with narratives, delve into stories, and journey through the captivating world of digital currencies.

X (Twitter) Telegram
Popular posts
2022-02-23 Getting Started

Cryptopedia: Unveiling the Metaverse’s Potential to Revolutionize the Internet

2022-03-07 Getting Started

Unveiling Cryptopedia: Grasp the fundamentals of DAOs and their operational mechanisms

2022-03-25 Getting Started

Cryptopedia: Explore Web3 and its goal to revolutionize internet services

Copyright © 2025 coinovel. All rights reserved.
  • Home
  • Cryptocurrency
  • Blockchain
  • Regulations Security
  • Analysis
  • Insights
  • News
  • Getting Started

Type above and press Enter to search. Press Esc to cancel.