As the Jan. 21st weekly close approached, BTC neared the $42,000 mark, attempting to stabilise above $41,000 after a challenging week for bulls. The price had briefly dipped to $40,270 marking its lowest point since Dec. 11th. Although Bitcoin didn’t experience a significant downside, it provided little optimism for those anticipating new highs. Market participants were keenly observing the weekly close and the resumption of Wall Street trading. The Grayscale Bitcoin Trust (GBTC), which converted to an ETF, witnessed outflows attributed to high maintenance fees and existing investors cashing out at par compared to spot prices. GBTC has seen outflows totalling $1.17 billion since its transition.
At the time of writing BTC was trading at $41,202.
Bitcoin after giving a breakout above the key resistance of $28,500 witnessed a sharp rally and the prices surged almost by 71.8% and made the high of $48,969. Post this move, the asset made a ‘Shooting Star’ candle at the high and failed to give a daily closing above the key resistance of $48,000. The prices corrected almost by 16% and dropped to $40.683. BTC has a strong support at $40,000 and to further rally it needs to close and sustain above $48,000.
Key Levels:
| Support 2 | Support 1 | Asset | Resistance 1 | Resistance 2. |
| $36,000 | $40,000 | BTC | $44,500 | $48,000 |
