Bitcoin volatility had declined to new lows as of January 08, upsetting both buyers and sellers.
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On January 8, the Bitcoin price prediction remained mainly stable as BTC consolidated slightly below $17,000. Likewise, Ethereum, the second-largest cryptocurrency, is trading in a volatile range near $1,260 after failing to stay above $1,275. Bitcoin volatility had declined to new lows as of January 08, upsetting both buyers and sellers.
James Butterfill, the head of research at CoinShares, tweeted that Bitcoin's 30-day volatility had dropped to a historic low of 18.7, placing it within the range of renowned market indices like the Nasdaq and S&P 500.
Bitcoin trade volumes have been gradually dropping since the FTX-induced market volatility stage in mid-November, indicating this trend. Trading activity has dropped by more than 3% since January 6th, according to data.
This seems to be a substantial change given the coin's erratic history over the last decade.
Crypto is too reliant on the 'Greater Fool Theory' to be a viable investment
Alan Greenspan, a former chairman of the Federal Reserve, spoke about cryptocurrency, the failed cryptocurrency exchange FTX, and the US economy in a year-end Q&A that Advisors Capital Management published this week.
Greenspan served as chairman of the Federal Reserve for a total of five terms, from 1987 to 2006. He served as the position chairman during the administrations of four distinct American presidents. He started working as the Economic Advisor at Advisors Capital Management in September 2016.
The former Federal Reserve head was asked about the latest FTX collapse and whether it could spread. The impacts of FTX would only impact the cryptocurrency and NFT (non-fungible token) industries, according to Greenspan after evaluating "the information that has come to light so far." He emphasized the significance of cryptos:
However, it is impacting the wider cryptocurrency market, slowing the bullish momentum.
Bitcoin Price
Bitcoin is currently trading at $16,948, with a $7.6 billion 24-hour trading volume. Bitcoin is at risk of sliding under the $16,775 support level after failing to close above the $17,000 double-top resistance level. BTC is in an ascending channel on the 4-hour time frame, indicating that closing over $16,775 could cause a retreat.
If it drops below today's $16,775 level, bitcoin could drop as low as $16,450. Bitcoin may start to trend upwards above $16,775.
Ethereum Price
Ethereum currently trades at $1,265 with a $2.6 billion 24-hour trading volume. The ETH/USD pair is encountering significant resistance on the 4-hour timeframe close to the $1,276 level, which is extended by a double top pattern.
An optimistic breakout of the $1,275 level can drive the ETH price to the next resistance zone of $1,300. However, the closing of Doji and spinning top candles below $1,275 may expose the ETH price to the $1,245 zone.
The price of ETH is currently trading at about $1,240, and a bearish breakthrough of that level might lead to further selling down to $1,220.
ALSO READ- Bitcoin and Ethereum Predictions: BTC to retake $17,000 and ETH to reach $1,300
