Bitcoin Could Drop in the Short Term

Bitcoin dropped on Tuesday after experiencing low volatility over the past few days, and traders are expecting the cryptocurrency to fall more in the coming weeks. Ethereum was little changed while Optimism’s OP jumped 5% on the day. According to B2C2, an over-the-counter market maker, BTC has witnessed a preference for buyers in the past weeks and could be set to drop in the short-term. “In recent market observations, bitcoin has shown a noticeable preference for buyers, despite the cryptocurrency’s price hovering within a tight range between $42,000 and $43,500 for much of last week,” said Ed Goh, head of trading at B2C2. “Without any immediate news on the horizon and the Ethereum launch now fully behind us, one might expect that the short-term range of Bitcoin could be reduced in the coming weeks, especially with Chinese New Year on the horizon.” Crypto Finance AG analyst Matteo Bottacini said due to the lightness of the current macroeconomic landscape, “any potential flash-crash is a favourable buying opportunity, especially a downturn towards the $40K level.”