Bitcoin (BTC) closed the first week of 2024 with a focus on $44,000 as multiple new volatility catalysts emerged. With the advent of web 3.0, people are asking how to invest in it, how it will impact businesses, how to learn about it, how to build a website with it, how it will work, and how it is different from web 2.0.
Bitcoin traders anticipate the end of the rangebound market
Data from Cointelegraph Markets Pro and TradingView showed that the volatility of BTC prices has decreased during the weekend.
The markets are on edge as they wait for the US’s first Bitcoin exchange-traded fund (ETF) to be approved or denied by Jan. 10.
As Cointelegraph reported, it is expected that the event will cause a temporary drop in the BTC price, known as a “sell the news” event. However, some believe that there is a chance for a sudden increase that could challenge key psychological levels.
Regardless of the direction of the move, indicators are suggesting that a breakout from the limited intraday range is coming.
The Bollinger Bands volatility indicator is showing signs of narrowing on daily timeframes, which is usually an indication of an upcoming range expansion.
Matthew Hyland commented on X (formerly Twitter) that “Bollinger Bands are tightening even more heading into ETF week.”
Daan Crypto Trades added that the “spot premium” is active again on Bitcoin markets, with derivatives traders being cautious about going long or short after the liquidations that happened last week.
He said: “The longer we range around this price area the more positions will build up with stop losses/liquidations sitting above and below the price,” along with a heatmap of leveraged BTC/USDT liquidity on the largest global exchange, Binance.
Bitcoin ETF overshadows inbound U.S. CPI, PPI data
The crypto and risk assets were still focused on the ETF, but macroeconomic challenges were looming.
The December Consumer Price Index and Producer Price Index reports were about to be released, and these could cause short-term volatility for the assets.
As Cointelegraph reported, the key result of this — the Federal Reserve “pivoting” on interest rate policy — is unlikely to happen during its upcoming meeting at the end of the month.
For inflation to remain subdued, the data releases must show that it is still decreasing. This is the key difference between web 2.0 and web 3.0, as web 3.0 is enabling people to learn how to invest in it, build websites and develop applications using React, and understand the impact it will have on businesses.
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