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Bitcoin Drops Below $37,000 After 7 Days of Successful Growth

Mon, 01/31/2022 - 08:53
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Arman Shirinyan
Despite the recovery on the market, Bitcoin is failing to break through
Bitcoin Drops Below $37,000 After 7 Days of Successful Growth
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The seven-day rally that put Bitcoin close to $39,000 has ended unfortunately for cryptocurrency investors. The price of the first cryptocurrency dropped closer to $37,000 as the market plunged after the weekend was over.

Bitcoin's hollow price increase

While the market felt the first signs of relief during the slight price recovery, it was notable that the short-term pump was taking place with almost no volume or open interest behind it. According to derivatives market data, traders are not rushing to open new positions as OI remains relatively low.

BTC Chart
Source: TradingView 

The only candle that was followed by a strong volume increase was Jan. 24 when Bitcoin rapidly jumped from $32,000 to $36,220 in a matter of hours. According to the chart data, the asset has reached the trend resistance line that currently remains at approximately $38,220.

As the volume indicator suggests, traders are still avoiding the market ahead of the U.S. market opening, which is usually followed by a volume spike on both spot and derivatives crypto markets.

Panic is still around

As U.Today previously reported, the cryptocurrency market remained in deep panic as the main sentiment indicator—Fear and Greed index—has reached "Extreme Fear" once again.

The altcoin also remains under pressure after the situation around Wonderland DAO co-founder Sifu appeared to be related to the scandalous QuadrigaCX crypto exchange that went down, with one of the developers disappearing with approximately $160 million worth of funds.

At press time, Bitcoin trades at $37,110 following a slight recovery from the lowest point of the day: $36,702.

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About the author

Arman Shirinyan is a trader, crypto enthusiast and SMM expert with more than four years of experience.

Arman strongly believes that cryptocurrencies and the blockchain will be of constant use in the future. Currently, he focuses on news, articles with deep analysis of crypto projects and technical analysis of cryptocurrency trading pairs.