Bitcoin price falls below $34,000

On January 11, the price of bitcoin temporarily dipped below $31,000. Market capitalization fell by more than $250 billion to around $900 billion.

BTC/USD intraday chart. Data: TradingView.

By the end of the day (MSK), quotes had recovered to around $33,000. The biggest decliners were Bitcoin Cash and Litecoin.

Data: CoinGecko.

The price drop led to liquidations of traders’ positions on the bitcoin derivatives market totalling $1.49 billion over 24 hours. The volume of liquidated positions across all coins amounted to nearly $2.7 billion.

Data: bybt.

Northman Trader founder Sven Henrich noted yesterday that buyers pushed the weekly RSI in bitcoin futures above 93, indicating the asset’s highest-ever overbought level.

#Bitcoin buyers have puked the futures chart to a WEEKLY RSI north of 93 its highest overbought reading ever. $BTC pic.twitter.com/5QUivPsCFy

— Sven Henrich (@NorthmanTrader) January 10, 2021

CryptoQuant CEO Ki Young Ju drew attention to a local maximum in the Miner Position Index — implying miners are selling bitcoins to lock in profits.

Miner Position Index looks enough to make a local top. They’re selling $BTC.

I’m going to punt a small short to scalp $BTC in this short-term bearish market.

Chart 👉 https://t.co/RbSJ9xbC56 pic.twitter.com/7RbQN7BgwW

— Ki Young Ju 주기영 (@ki_young_ju) January 10, 2021

Renowned trader Tone Vays believes the price correction will be short-term, and by the end of January he expects new all-time highs for the leading cryptocurrency.

Wow, the #Bitcoin MRI Top was on the money today… As I said in my videos last few days, look for a 1-4 day correction then probably a new All Time High by end of month $BTC pic.twitter.com/H4j21b1hze

— Tone Vays (#EndLockdowns) (@ToneVays) January 10, 2021

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