Bitcoin (BTC) retested the $xxx,000 support on Jan. 27 equally a solar day of losses culminated in violation of the psychologically significant price level.

BTC/USD i-minute candle chart (Bitstamp). Source: Tradingview

BTC price spooks amidst GameStop row

Information from Cointelegraph Markets and Tradingview showed any bullish momentum left in Bitcoin dissipate on Wed after rejection at highs near $33,000.

"Another $30,000 retest for #Bitcoin," Cointelegraph Markets annotator Michaël van de Poppe summarized.

Despite aiming for another test of monthly lows, Bitcoin's price action hardly surprised regular market place participants. For beau trader Scott Melker, it was a case of "wait and see" until the longer time frames completed.

"6 hr looks the aforementioned as 4 hour. 12 hour needs ten more than hours, so barely worth watching. But the potential is there. Bottom line: no clear bespeak yet, but worth keeping an eye if they can build up," he wrote in part of a series of tweets on Wed.

The resolution of current cost action would, even so, be a "moment of truth" for BTC/USD, he said.

As Cointelegraph reported, attention was broadly focused on GameStop stock throughout the day, afterwards its 700% fortnightly gains defenseless the attention of both the media and regulators.

Likewise defying expectations was movie theater chain AMC, which gained 240% in a day after fugitive bankruptcy.

Hodl on, Redditors vow

Bitcoin, despite beingness a more than cost-effective buy-in than at almost whatever fourth dimension since Christmas, failed to concur the limelight.

"People have maximum interest at $twoscore,000 per #Bitcoin, but well-nigh zero involvement at $30,000 per #Bitcoin. Interesting," Van de Poppe added.

Data from on-concatenation monitoring resource Whalemap highlighted an area at $29,300 equally likely support in the upshot of a $xxx,000 breakdown.

Wallet inflows giving likely support and resistance levels for BTC/USD. Source: Whalemap

Also worth noting is the Dollar Currency Index (DXY) showing its traditional inverse correlation with BTC as the markets opened on Wed. The DXY rebounded to its highest level in nearly two weeks while BTC and stocks pulled back.

Dollar currency index (DXY). Source: Tradingview

Cryptocurrency skeptics meanwhile used the GameStop debacle to pour contemptuousness on Bitcoin and those who argued that decentralized investment was a beneficial phenomenon.

"Attending #Bitcoin HODLers: The just people who will walk away with whatsoever existent winnings from the #GameStop brusque-clasp will be those smart enough to sell. Those who HODL volition probable lose it all. Bitcoin HODLers volition meet the aforementioned fate if they fail to realize their paper profits," golden bug Peter Schiff tweeted.

A glance at the subreddit used for stocks plays, r/Wallstreetbets, meanwhile showed that user strategies focused on hodling, non selling, their newly assisting stock — at the expense of unprepared hedge funds.

"Retail reflexivity in action in traditional markets," commented trader Philip Swift, adding:

"Never underestimate the power of the masses."

Quotes in this commodity taken from previously published sources have been lightly edited.