▫️#BTC (four-hour timeframe): Bitcoin dropped to the lower boundary of the descending channel around $39,500—the area of the expected rebound. As a result, the asset closed the gap on the CME formed in December. RSI values reached the lower line of the Bollinger Bands indicator, which may signal the imminent finding of a local bottom by the instrument.
Confirmation of buyer strength will be the return of Bitcoin above the $40,500 trading level. This will be a key factor for the asset to break out of the channel and trigger an upward impulse towards the $45,000 resistance level. If selling pressure proves stronger, the next support zone for price movement will be the $37,950 trading level. In this case, one can expect a Bitcoin rebound, at least to the level of the 4-hour exponential moving average (EMA 200) at $42,000.
▫️#ETH: The asset set a local minimum at $2,305. For Ethereum’s recovery, buyers need to push the price above the $2,350 trading level.
▫️Since the approval of the spot Bitcoin ETF in the U.S., investors have sold shares of the Grayscale fund worth over $2 billion. A significant portion, around $1 billion, was sold by the bankrupt FTX exchange.
Since the approval of the ETF, there has been a significant outflow of funds from GBTC on each trading day. Analytical services have recorded consecutive movements of a significant number of bitcoins from Grayscale addresses to the Coinbase exchange, including more than 19,000 bitcoins on January 22. FTX has reportedly sold all its shares from the GBTC fund.
I believe the reason for the fund outflow is also the high commission of the financial structure, currently at 1.5%. According to analysts at JPMorgan Chase, the fund may lose another $13 billion, of which $10 billion will be transferred to other products in the same sector. I assume investors are making decisions to reallocate their assets based on a combination of new opportunities, current changes in Bitcoin prices, and a desire to avoid high fees.
▫️Altcoins: The listing of the native token of the mockJUP project (#MOCKJUP) on the Bitrue exchange caused a 25% increase in #MOCKJUP (to #USDT).
With the placement of synthetic assets tied to the value of NFT collections Bored Ape Yacht Club and Pudgy Penguins on the WOO X trading platform, the value of #FLC increased by 22% (to #USDT).
The integration of Magpie (#MGP) with the EigenLayer platform led to an 18% increase in #MGP (to #USDT).
▫️American stock indices closed Monday’s trading with gains due to the strengthening of the industrial, telecommunications, and financial sectors. Market participants are closely watching preliminary data on U.S. GDP growth for the last quarter and the income and spending report for December. This report includes an important inflation indicator actively monitored by the Federal Reserve.
At the closing on the New York Stock Exchange, the Dow Jones rose by 0.36%, reaching a historic high, the S&P 500 increased by 0.22%, and the NASDAQ Composite rose by 0.32%.
▫️Cryptocurrency market capitalization fell by 2.7% over the last 24 hours, while Bitcoin dominance remained unchanged. The signal for the recovery of the digital asset market will be the consolidation of #BTC above the $40,500 trading level.