Market Wrap: Bitcoin Ends January Failing Several Bullish Predictions

Bitcoin started the first month of the year on a very high note. This was a continuation of the previous month’s trend that saw the apex coin register significant gains.

One factor was responsible for the uptrend. The market at the time was going through one of the best periods as the news of the impending approval of bitcoin ETF was making waves. In response, bitcoin had several surges.

One such took place on the eighth day of the month. It opened trading at $43,936 and dropped to a low of $43,213. Afterward, it aimed to break the $46k resistance and succeeded. It continued and peaked at $47,281 but dropped to a close of $46,995. This meant it gained almost 7%.

The approval came and the top coin continued its uptrend. As a result, it continued its uptrend and surged to its highest in almost a year. It opened January 11 at $46,678 and surged. Many held their breath as they watched and anticipated a return to $50k. It seemed that way as the cryptocurrency broke $48k. However, it halted its advances at $49k as it faced strong rejection. It soon dropped to a low of $45,600 and ended the day with no notable changes in value

BTC had one of its biggest downtrends during the next intraday session. It lost the $46k support first and continued its downtrend, breaking the barrier at $44,500. The $42k support was the next mark to flip and the apex coin dropped to a low of $41,509 before a small recovery. In the end, it closed at $42,778 with losses exceeding 7%.

On the monthly scale, the largest cryptocurrency by market is ending the month with a doji. This depicts the volatility the asset enjoyed during the period under consideration. Aside from the high, it dropped to a low of $38,505 but recovered as is currently exchanging at $42,558 which is a little higher than its opening.

Bitcoin Weekly Charts Depict a Bearish Start to February

On the weekly chart, price actions are looking as bright as many will expect. Reflecting on what transpired over the last four weeks, the first was the most profitable as the apex coin gained almost 4%. The second saw bitcoin register its biggest loss of the period, as it lost more than 5%.

A look at the indicators shows a gloomy start to the next month. The Moving Average Convergence Divergence is the main metric in this. A closer look at MACD shows that the 12-week EMA halted its uptrend. The 26-week EMA has caught up with its counterpart. Currently in a bearish convergence, a divergence will soon take place which spells more downtrend for the largest cryptocurrency.