After a decade-long wait, the First spot Bitcoin ETFs started trading in the US Market on Thursday witnessing a $4.5 billion in trading volume on its listing day. While this development triggered a notable uptick across the crypto market, the underlying asset BTC continues to suffer in uncertainty.
On Friday, the Bitcoin price experienced a swift 6% sell-off, plummeting to a daily low of $43,623. This decline occurred just one day following the launch of Spot Bitcoin ETFs, sparking debates about the validity of the ‘sell-the-news’ theory.
Healthy Retracement May Strengthen BTC Recovery
- A rising trendline acts as the first line of defense for Bitcoin buyers
- The falling BTC price may witness demand pressure at $40000 and $37000 support level
- The intraday trading volume in Bitcoin is $15.3 Billion, indicating a 2.1% loss.
Bitcoin Price| TradingView Chart
The largest cryptocurrency by market cap Bitcoin has been under a strong recovery since mid-September when the price rebounded from $25,000. In just 4 months, the coin price recorded nearly 96% growth to hit a high of $49,000. While the recent launch of Spot Bitcoin ETF was expected to intensify the recovery trend the asset showed a struggle to sustain above the $48,000 mark.
Veteran trader Peter Brandt recently shared some thought-provoking views on Bitcoin and its evolving market dynamics.
Brandt, with his deep experience in stocks and futures, observes that a rush by the general public to buy into a market often signals a prime time for seasoned traders to sell off their holdings.
He points out that a core value of Bitcoin has been its independence from governmental control, standing apart from traditional financial systems that have failed in various ways. Yet, there’s an irony in how many in the Bitcoin community now see regulatory bodies and ETFs as key to their financial success.
Brandt suggests that the potential approval of Bitcoin ETFs could turn into a quintessential ‘buy the rumor, sell the news’ scenario, reflecting a pivotal shift in the crypto market
Is Bitcoin Price Poised For A Major Fall?
Following a vigorous four-month rally, it was anticipated that Bitcoin price would undergo a period of retracement, a natural step to consolidate and rejuvenate its bullish momentum. As per the Fibonacci retracement tool, the BTC price is above the 23.6% FIB level, which is considered healthy for an established trend. Using the same tool, the falling BTC price may witness sufficient support at $40000 and $37000 which aligns with the 38.2% and 50% FIB levels.
Any correction below this level would start to reflect weakness in market participants and strengthen the concerns of the Sell-the-News Scenario
- Bollinger Band: A flattish upper boundary in the Bollinger band indicator reflects weakness in bullish momentum.
- Relative Strength Index: The daily RSI drop below 50% indicates the rising selling pressure in the market.
Related Articles
- Grayscale Responds To SEC’s Bitcoin ETF Approval Challenges
- Coinbase CEO & CLO Credit Grayscale For Historic Bitcoin ETF Win
- BlackRock Spot Bitcoin ETF (IBIT) Soars 25% In Pre-Market Hours
