BTC price recovers from $40.3K lows with Bitcoin volumes ‘decimated’

Bitcoin (BTC) edged closer to $42,000 into the Jan. 21 weekly close with time almost up on a grim week for bulls.

BTC/USD 1-hour chart. Source: TradingView

BTC price awaits fresh cues

Data from Cointelegraph Markets Pro and TradingView showed BTC price action stabilizing above $41,000 over the weekend. The pair had previously dipped to $40,270 on Bitstamp — its lowest since Dec. 11.

While not delivering major downside, Bitcoin offered little hope to those seeking new highs, with market participants looking ahead to the weekly close and return of Wall Street trading.

“Bitcoin has indeed dropped into the Weekly Range Low after flipping black into new resistance,” popular trader and analyst Rekt Capital warned on X (formerly Twitter).

“Weekly Close below the Range Low would be bearish and could begin the breakdown process.”

#BTC has indeed dropped into the Weekly Range Low after flipping black into new resistance

Weekly Close below the Range Low would be bearish and could begin the breakdown process$BTC #Crypto #Bitcoin https://t.co/ZIgcdyyiIe pic.twitter.com/SXQ5BfQ4Ds

— Rekt Capital (@rektcapital) January 19, 2024

Fellow trader Crypto Tony maintained the possibility of a trip below $40,000 to come between now and April’s block subsidy halving.

$BTC / $USD – Update

Mid range at the moment, but $38,000 i expect as we grind towards the halving in April legends pic.twitter.com/n3t3a33kXW

— Crypto Tony (@CryptoTony__) January 21, 2024

Joe McCann, founder of crypto fund Asymmetric, meanwhile noted just how little trading volume Bitcoin was now seeing.

“Bitcoin vols have been absolutely decimated post ETF launch (as expected),” he told X subscribers alongside data from derivatives exchange Deribit.

“The spread between implied and realized vol is the widest it’s been in a very long time.”BTC 1-week implied volatility vs. realized volatility. Source: Joe McCann/X