As the cryptocurrency market continues to discuss the potential of a bull run, Bitcoin faces instability starting the fourth week of January. After reaching two-year highs, Bitcoin struggles to maintain momentum, with investors closely watching the critical $40,000 support level. The future of Bitcoin is uncertain, with the end of the process for the United States’ first spot Bitcoin exchange-traded funds (ETFs) causing analysts to question what’s next.
The upcoming week hints at a calm before the storm, with macroeconomic changes on the horizon as the Federal Reserve’s interest rate decision is due on January 31st. Meanwhile, Bitcoin’s next halving event countdown has not yet begun, but the battle for price support intensifies as the BTC/USD pair has already dropped about 20% from its peak levels.
According to TradingView data, Bitcoin experienced another disappointing weekly close, marking the lowest level in over a month. A brief surge retested the $41,700 level, but a $1,000 drop before the close negated this recovery. Popular investor Skew analyzed the situation overnight, highlighting strong support for orders below $40,500, indicating robust demand for Bitcoin.
A chart showcased order book liquidity for the BTC/USDT pair on Binance, the world’s largest exchange. Investors are now revisiting the $40,000 level as a topic of interest, with bid interest also accumulating above $35,000, making this area a popular choice for potential long Bitcoin positions in the futures market.
Decentrader analysts pointed out that Bitcoin is retesting the $40,000 to $41,200 range, which has been tested several times over the last two months. They revealed that one of their proprietary trading tools, which compiles popular data, is now indicating a bullish turn.