Bitcoin returns to $37K amid warnings that BTC price 'needs to go lower'

Bitcoin (BTC) cracked $37,000 astatine the Jan. 28 Wall Street unfastened arsenic traders watched and waited for a absorption retest.

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

BTC evades a large absorption test

Data from Cointelegraph Markets Pro and TradingView showed BTC/USD returning to signifier aft dipping to $36,175 connected Bitstamp earlier successful the day.

As portion of the range-bound behavior, hopes were held precocious that momentum would proceed to situation absorption levels person to $40,000, whether oregon not the eventual result would beryllium a caller correction.

"The bearish script seems astir likely, which is precisely the crushed wherefore I deliberation we'll spot a astonishing move," fashionable trader Crypto Ed said arsenic portion of comments connected the contiguous outlook.

"Only aft a convincing reclaim of $40K I'll beryllium afloat bull."

Fellow trader and expert Anbessa reiterated erstwhile demands for $38,500 to clasp successful bid to proclaim the corrective signifier arsenic implicit for Bitcoin.

As Cointelegraph reported earlier, debased backing rates are combining with an improving picture crossed derivative markets, thing which could yet spark a timely compression upward.

— Rekt Capital (@rektcapital) January 25, 2022

On Jan.24, Rekt Capital highlighted the country for Bitcoin to reclaim successful bid to rekindle bullishness connected longer play timeframes. As reported, this would travel successful the signifier of $39,600 arsenic a play adjacent price.

"Similar vibes" to aboriginal 2018

Crypto Ed, however, was not unsocial successful his feeling of foreboding implicit a imaginable caller breakdown.

Related: ‘Bull oregon carnivore market?’ Bitcoin losses from panic selling equine successful 2022

Despite taking liquidity during its little dip beneath $33,000 earlier successful the week, Bitcoin has not convinced everyone that the level is genuinely in.

Discussing the issue, Twitter expert TXMC Trades, concluded that BTC/USD "still needs to spell lower" from the existent spot price. History, it seems, supports the theory.

"It seems incorrect that BTC would bleed consecutive down from the ATH without a alleviation rally, lone to person the reversal beryllium front-run without decently investigating the scope low," helium argued.

"Similar vibes to April 2018 wherever the $6K bounce was front-run, but yet collapsed. Just a gut feel."

TXMC nevertheless noted that the bounce from $33,000 had liquidated much abbreviated positions than astatine immoderate constituent since Bitcoin's $69,000 all-time highs past November, citing information from on-chain analytics steadfast Glassnode.

Bitcoin futures abbreviated liquidations annotated chart. Source: TXMC Trades/ Twitter