After a 28% correction from January 8–11, bitcoin clawed back the psychological $30,000 mark. According to Arcane Research analysts, such a pullback could be the prologue to range-bound trading before the formation of a new bullish impulse.
Is this the correction we’ve been waiting for?📉
After many weeks of exponential growth, the crypto market took a brutal hit going into the new week. Bitcoin dropped 28%, before recovering quickly from the $30,000 level.
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— Arcane Research (@ArcaneResearch) January 12, 2021
Holding above $35,000 would significantly boost the odds of resuming Bitcoin’s rally. A retest of $30,000 with a move below that level could push quotes toward the next support at $27,000.
Data: Arcane Research.
The January correction led to a record $1.8 billion liquidations in Bitcoin derivatives. On January 11 the long/short ratio stood at $1.5 billion. That day, from peak to trough, Bitcoin’s price moved $7,500.
Data: Arcane Research.
Retail traders began showing interest in the crypto market as Bitcoin reached historic highs. Mentions of the asset on Twitter reached December 2017 levels. The number of authors of such tweets surpassed three-year highs.
Data: Arcane Research.
Despite the correction, March Bitcoin futures premia to the spot market continued to rise. The disposition signals traders’ confidence in Bitcoin’s positive prospects in the first half of 2021.
The measures approached 20% on both unregulated derivatives exchanges and the Chicago Mercantile Exchange (CME). On the CME, daily volumes for the first time exceeded $2 billion.
Data: Arcane Research.
On January 11, large holders of the first cryptocurrency did not yield to panic and increased their positions.
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