Bitcoin Dodges ‘Sub-$30K Liquidity Grab’ — Levels To Watch Now

The much-anticipated sustainable reset has finally been witnessed by the BitQS derivatives market. Now, according to reports, the likelihood of a relief bounce has increased more than ever before. 

While one cannot neglect the fact that Bitcoin could fall further to the $29,000 price range, price actions show positive signs compared to weeks ago. 

On the 28th of January 2022, a fresh market update prompted several analysts to conclude that there is bullish optimism in the market. 

Attention On “Near-Term Relief Bounce” For BTC

Following a difficult week that saw Bitcoin drop below the $33,000 price range, market analysis has now changed focus. The primary focus right now is the possible effects of the range-bound trend experienced in the last few days.

According to Decentrader, investors now have a reason to be carefully optimistic now considering the market showed no bullish sign the previous week.

Many analysts now believe that the awfully negative trend and the present derivatives shift in trend will facilitate a potential near-term relief bounce. 

Analysts have come to share this bias since the factors that had formerly not reset as price action dipped stood their form.

A good example here is the structure of the derivative markets. And these include open interest falling towards levels of lesser speculations coupled with the decline of the negative funding rates.

According to Cointelegraph, negative rates currently conform with the entire market sentiments summoning fresh losses.

Historically, situations like this often create an ideal condition for an upward surge in price. According to the market update released concerning the positive pressure on the present Bitcoin supply, bullish bias seems to be showing up. 

Presently, more buyers are beginning to step into the market. Hence, a potential change from bearish to bullish trend should occur soonest on higher time frames.

 Even though it is atypical of bull markets to sell overall, this primarily hints that those behind the trend are taking serious losses. 

Bitcoin Reaching $29,000 And Under Seems Less Likely

Moving forward, many crypto analysts consider the $29,600 price range as a bounce zone for support. However, this will only come into play if other supports above the $30,000 price range fail to hold.

 Looking at the upside, the price range between $38,000 and $39,000 currently serves as resistance to upward movement.

According to Decentrader, another significant resistance that follows is the $47,000 price range followed by $53,000. For now, support remains strong at the $32,000 price range.

Although there are arguments that suggest the price initially reached the level on the 24th of January 2022. A long wick reaching $300 shot if the price range verifies these claims. 

Beyond the $32,000 support level, the next support lies within the $30,000 price range which opens the avenue for a possible sub-$30,000 liquidity grab.

Following the Crypto Fear & Greed Index, sentiments right now as regards funding continue to be "extreme fear".  

This sentiment now rivals the coronavirus crash of March 2020 and the bear market trough of 2018 as regards record-breaking length.

Optimism While the Market bleeds 

Even though the winter season is here and bitcoin has been constantly bleeding, a lot of bitcoin proponents still have faith in the digital coin.

Right now, the cryptocurrency is far away from its all-time high of $69,000 after experiencing a more than 50% dip. 

However, even with the massive dip, Bitcoin is twice as valuable as it was some couple of years back. For veteran holders, this present dip seems like a child's play to some previously experienced.

The ups and downs now seem like nothing new to them. Now, with data suggesting a bullish bias might become prevalent in the crypto sphere, the trend might change soonest.

As a result, bitcoin proponents are beaming with optimism again. Presently, it seems many of these bitcoin proponents now look forward to bitcoin hitting the $100,000 bitcoin price prediction of last year. 

Hopefully, the $32,000 support level holds and Bitcoin gets enough push to reach its all-time high region once again. Only then can the digital currency rally towards the $100,000 price prediction level.