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The consolidation range discussed yesterday has been broken, and unfortunately for the bulls, it was to the downside. The $94–96K range had held Bitcoin for the past three days, and as of yesterday’s Morning Note, Bitcoin was testing the top of the range, hinting at a potential breakout to the upside.
This, however, did not materialise. Bitcoin was flatly rejected at the top of the range and quickly reversed downward. From its high of $95.9K, Bitcoin plunged 7% within 14 hours to a low of $89.2K. While this drop was certainly discouraging, the recovery was swift; Bitcoin rebounded 6.31% in just six hours to trade back within the range at $94.6K.
The volatile price action resulted in over $820 million worth of leveraged positions being liquidated, reaffirming our stance on the superiority of holding spot Bitcoin. While leveraged traders endured liquidations amidst multiple 7% swings, spot holders remained unaffected. Bitcoin ultimately closed the day only $9 lower than where it started—proving once again the resilience of holding spot during turbulent times.
Looking ahead, with less than a week until Trump assumes office again, we anticipate heightened volatility characterised by fake breakouts (like the one observed last night). This period presents an opportunity to accumulate Bitcoin and select altcoins at discounted prices when such dips occur.
Stormrake Spotlight: Hyperliquid (HYPE) ($21.40)
Stormrake Spotlight: Hyperliquid (HYPE) ($21.40)
Despite dropping to a low of $18.56 yesterday, HYPE closed the day on a bullish note, extending its streak of consecutive green daily candles. HYPE’s ability to close positively in the face of extreme market volatility signals strength. This resilience makes it a coin worth monitoring, as it could lead the market recovery once sentiment turns more bullish.
BTC/USD Key Levels and Price Action:
BTC/USD Key Levels and Price Action:
As mentioned earlier, Bitcoin failed to break out above the $94–96K range and subsequently experienced a sharp drop below $90K. However, BTC bounced back and managed to avoid a close below the critical $89.9K support level, recovering swiftly into the range. While this price action confirms a bearish structure in the short term, the rapid recovery could hint at the re-emergence of bullish momentum. Traders should watch for further signs of strength before turning fully optimistic.
BTC Total ETF Flows for 13 Jan: $ - 200 million
(ETF flow data is sourced from https://farside.co.uk/btc/ and reflects figures at the time of writing.)
ETH/USD Key Levels and Price Action:
ETH/USD Key Levels and Price Action:
Ethereum faced a steeper decline than Bitcoin during the sell-off, finding support at the monthly CPR support ($2,923). However, it has yet to reclaim the key $3,207 level, leaving its short-term structure more bearish than Bitcoin’s. On a positive note, ETH has managed to reclaim its 21 EMA, a potential sign of a shift in momentum. Should ETH hold this level and push higher, bullish momentum may return. Until then, caution is warranted as it remains weaker than BTC.
ETH Total ETF Flows for 13 Jan: $ - 52.3 million
(ETF flow data is sourced from https://farside.co.uk/eth/ and reflects figures at the time of writing.)
*All prices are denominated in USD unless stated otherwise*
Written by Alexandar Artis
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