SHOCKING SIGNAL TRIGGERS MASSIVE BITCOIN CORRECTION!! ETHEREUM SPIKES TO NEW 3 YEAR HIGH OF $1,161!!

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Bitcoin (BTC) lost $30,000 support on Jan. 4 as all-time highs gave way to a rapid retracement totaling thousands of dollars.

Data from Cointelegraph Markets, Coin360 and TradingView showed BTC/USD shedding more than 12% in just one hour on Monday.

The pullback gathered pace after choppy trading behavior overnight on Sunday, with altcoins rising to take an ever larger slice of Bitcoin's market cap dominance.

At press time, amid heavy volatility, lows focused on $27,700 amid a bounce to nearer $30,000.

Exchange activity was picking up, data showed, with inflows rising dramatically on the day after traders removed funds last week.

"Just woke up to the biggest $BTC dip we've had since breaking 20k," Venture Coinist podcast host Luke Martin summarized.

"Down 20% from the peak....my brain is not used to 28k being a 20% drop though."

Those brought Bitcoin in line with short-term predictions from Cointelegraph Markets analyst Michaël van de Poppe, who identified the lower bound for Bitcoin in his latest YouTube video update.

"If we want to see some support zones on Bitcoin and expecting where we're going to move from, the first area is around $29,600, second area is around $27,600," he said just before the major losses told hold.

As Cointelegraph reported, statistician Willy Woo was unfazed about a significant pullback on Sunday, arguing that only a freak occurrence could take BTC/USD to $24,000 — the site of a "gap" in Bitcoin futures markets left from December.

In other trending Crypto news today:

"Ethereum Price Spikes to $1,161 For The First Time In Three Years: What’s Next?"

The price of Ether (ETH), the native cryptocurrency of the Ethereum blockchain, achieved $1,161 for the first time since January 2018. Immediately after it hit a new three-year high, ETH corrected to below $900.

Ether rallied due to the momentum of Bitcoin. Historically, following a strong BTC rally, altcoins saw a swift uptrend. Traders usually call this “altseason” because many altcoins tend to increase in tandem.

Ether rose following Bitcoin’s rally, but on-chain data also showed that there was a sell-side liquidity crisis.

Throughout 2020, the reserves of ETH on exchanges declined to historic lows. This means that there has been a lower number of ETH that could be sold on exchanges. Ki Young Ju, the CEO of CryptoQuant, explained:

“It seems the sell-side liquidity crunch started to hit $ETH just like the $BTC market. For $BTC, all exchanges' reserves decreased by 31% compared to Feb 2020. For $ETH, all exchanges' reserves decreased by 20% compared to May 2020.”

However, despite the strong rally to levels unseen since January 2018, Ether swiftly pulled back. There are two main reasons behind its correction: high funding and heavy sell orders at a key resistance level.

According to data from Glassnode, the futures funding rate of Ethereum is averaging 0.2% across major exchanges.

Normally, the funding rate stays at around 0.01% when the futures market is not overheated. Analysts at Glassnode said:

“Ethereum funding rates are at a record high, breaking an average of 0.2% across major exchanges. BitMEX is leading the pack with a funding rate above 0.4%.”

When the market is overwhelmingly swayed to buyers or long contract holders, the probability of a long squeeze rise.

The term long squeeze refers to a scenario during which long contract holders are forced to liquidate their positions when the price of Bitcoin drops. This leads the selling pressure on BTC to intensify in a short period.

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Show Notes / News Resources:
- Bitcoin Technical Analysis: https://bit.ly/3pFE9hE
- Ethereum Technical Analysis: https://bit.ly/3hIwgVV
- Max Keiser Bitcoin Prediction: https://bit.ly/2X7fGFw

DISCLAIMER: This is NOT financial advice. The views and opinions expressed in this video are just opinions, nothing more. Trading is very risky and so is investing into Cryptocurrency. Seek financial advice from a professional and trade at your own risk because I am not responsible for any investment decisions that you choose to make.

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