Bitcoin Price Drops to a Week Low

Bitcoin has fallen to a one-week low under $50,000 as the heavy resistance is kept. The cryptocurrency has failed to break out above $53K despite some typically bullish factors.

Resistance holds despite ETF Hopes

Many expected Bitcoin to rally on the back of buyer interest in spot exchange-traded funds (ETFs). However, these inflows have failed to lift cryptocurrency prices above $53,000 resistance level.

Assistant editor Keith Alan says that Bitcoin falling into the red this week means the ETF selling pressure is overpowering related demand. He argues that even in the era of Bitcoin ETFs, prices do not only go up, and whales are selling into new inflows.

Sentiment ahead of price action

According to Daan Crypto Trades, bearish sentiment may be outpacing actual price moves. Bitcoin has been ranging for the past week without a clear breakout. He implies to wait for it to be confirmed in either direction before jumping in with the trades.

High funding rates raise concerns 

Trading firm QCP Capital see high funding rate as the "money is cheap" push as the reason behind the possible pullback after the recent spurt in Bitcoin price. However, at such levels of the movement now, it is challenging to maintain a continuing funding rate.
 

QCP in addition focuses on imminent tech earning news that might influence the market and mostly regarding upcoming major earnings such as Nvidia on the 9th of February. The risk assets could face negative impact on their overall price, if Nvidia trading in a high valuation multiple misses the earnings.

Cautious optimism still warranted

However, Jelle says lower time frame charts may offer a blurred oversight of the big picture overview. With some minor points of weakness, bitcoin’s higher timeframe charts are still showing signs that a new all-time high in its price may be on the horizon.

Consequently, one has to keep in mind the existing hurdles, but at the same time there is still a substance for us to be more hopeful over Bitcoin in the current set up. Investors should avoid being shaken out by temporary pullbacks.