Bitcoin approached the $42,000 level during the weekly close on January 22, after a challenging week for bulls. Data from TradingView indicated that Bitcoin’s price stabilized above $41,000 over the weekend, following a drop to $40,270 on centralized exchanges, marking the lowest levels since December 11.
Despite no significant drop, Bitcoin has not yet inspired confidence among market participants looking for new highs, as they watch the weekly close and the return of Wall Street trading. Analyst Rekt Capital suggested that a weekly close below the low range could signal a bearish trend and trigger a sell-off.
Another trader, Crypto Tony, speculated on the possibility of Bitcoin’s price dipping below $40,000 before the halving event in April. Meanwhile, Joe McCann of Asymmetric highlighted the current low trading volume in Bitcoin markets, pointing out the significant gap between partial and realized volume since the ETF launch.
The United States’ spot Bitcoin exchange-traded funds (ETFs) continued to attract attention, with the value of assets under management increasing to approximately $4 billion since the January 11 launches, mitigating the impact of sales from the Grayscale Bitcoin Trust (GBTC).
GBTC experienced outflows due to high transaction fees and investors’ desire to cash out against spot Bitcoin. Since the conversion of GBTC to an ETF, the trust has seen $1.17 billion in outflows, with QCP Capital noting that this was expected due to GBTC trading at a discount since 2020 and the ETF conversion providing an anticipated exit opportunity for GBTC holders.