Contents
Quick Take
- The price of bitcoin rose back above the $42,000 mark on Friday, reaching a level not seen in over one week.
The price of bitcoin increased back above the $42,000 mark on Friday to a level not seen in more than a week.
The price action caused the liquidation of almost $96 million of cryptocurrency short positions, according to Coinglass data. In the past 24 hours, liquidated bitcoin leveraged positions spiked to over $41 million, with over $37 million of these being shorts.
The largest digital asset by market capitalization has increased by over 5% in the past 24 hours and was changing hands for $42,085 at 1:10 p.m. ET, according to The Block data.
BTC +1.13% has risen over the $42,000 mark. Image: The Block.
Today’s bitcoin uptick comes after a significant amount of bitcoin options expired on Friday. As that expiry approached, there were 94,000 bitcoin options set to expire, featuring a put-call ratio of 0.51, which is interpreted as a bullish indicator for the asset, as reported by Greek Live.
Bitcoin options open interest has declined significantly after Friday’s expiry, lessening derivatives market constraint on the digital asset.
THE SCOOP
By signing-up you agree to our Terms of Service and Privacy Policy EMAIL Also receive The Daily and our weekly Data & Insights newsletters – both are FREE By signing-up you agree to our Terms of Service and Privacy Policy
Bitcoin price correction forecasted
Earlier in the week, BitMEX Co-Founder Arthur Hayes expressed his belief that the price of bitcoin would continue to decline. In a blog post on Tuesday, Hayes predicted a 30% correction for bitcoin, which reached approximately $48,000 immediately after the approval of multiple spot bitcoin exchange-traded funds on Jan. 10.
According to Hayes, this correction could bring bitcoin down to the $33,600 level, ultimately establishing a new support zone between $30,000 and $35,000.
"A 30% correction from the ETF approval high of $48,000 is $33,600. Therefore, I believe bitcoin forms support between $30,000 to $35,000," Hayes wrote in the blog post.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
TAGS BITCOIN CRYPTO MOVERS
About Author
Brian McGleenon is a UK-based markets reporter for The Block. He has worked as a financial journalist and producer for multiple news outlets over the years, such as Fuji Television, The Independent, Yahoo Finance, The Evening Standard, and The Daily Express. Brian is also a screenwriter and producer with one feature film produced and one in development with Northern Ireland Screen. Apart from web3 and cryptocurrency developments, he is also interested in geopolitics, environmental issues, artificial intelligence, and longevity research. Get in touch via email [email protected].
Editor
To contact the editor of this story:
Nathan Crooks at
[email protected]
More by Brian McGleenon
Ether options monthly trading volume hits all-time high in January
January 26, 2024, 11:02AM EST Exchanges