Arcane Research: bitcoin needs to consolidate above $35,000 to complete correction

After a 28% correction on January 8-11, bitcoin reclaimed back the psychological mark of $30,000. According to Arcane Research analysts, such a  Bitcoin Union scam pullback could be a prologue for range trading before a new upward momentum is formed.

A fix above $35,000 would significantly increase the chances of the first cryptocurrency’s rally resuming. A retest of $30,000 with a move below that level could push quotes to the next support at $27,000.

The January correction led to a record liquidation of $1.8bn worth of bitcoin derivatives. On January 11, the figure for longs was $1.5bn. On that day, the price of the first cryptocurrency went from a high to a low of $7500.

Retail players began to show interest in the cryptocurrency market amid bitcoin reaching historic highs. The number of mentions of the asset on Twitter reached December 2017 values. The number of authors of such tweets has surpassed the highs of three years ago.

Despite the correction, March bitcoin futures premiums against the spot market continued to rise. Such a disposition speaks to players‘ confidence in bitcoin’s positive prospects in the first half of 2021.

Performance approached the 20% mark on both the unregulated derivatives exchanges and the Chicago Mercantile Exchange (CME). On the latter, daily volumes exceeded $2bn for the first time.

Recall that on January 11, major holders of the first cryptocurrency did not succumb to panic moods amid the recent drop in quotations and built up positions.

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