Market Analysis

Bitcoin price bounces off $42K as order book imbalance turns ‘crazy’

No challenge of $40,000 yet as analysis reveals that active bears are selling into a black hole.

Bitcoin (BTC) briefly touched $43,000 prior to Wall Street opening on Jan. 6 as new market analysis offered bad news for bears. 

Bitcoin price bounces off $42K as order book imbalance turns 'crazy'

BTC/USD 1-hour candle chart (Bitstamp). Source: TradingView

“Very similar to $30,000”

Data from Cointelegraph Markets Pro and TradingView followed BTC/USD as it ranged after hitting its lowest levels in nearly six weeks.

Amid six-month lows for sentiment and a feeling of foreboding on social media, analysis investigating trader behavior nonetheless concluded that all is not as bad as it seems.

In a series of posts on the day, popular Twitter account Byzantine General argued that for all the downside, sellers are practically exhausted.

“This is starting to feel very similar to the 30k range now,” he summarized.

Read more:  Warren Buffett praises stocks Dollar-cost averaging — but does it work for Bitcoin?

“Uncanny how BTC is in a Jun-Jul deja vu. Live, die, repeat,” statistician Willy Woo tweeted.

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