Bitcoin Faces Severe Selling Pressure as Downtrend Intensifies

• At the time of writing, Bitcoin is trading at $42,717, down 7.15% in the last 24 hours.
• If the price manages to go below $41,940 then it will likely decline further to test $36,800.

Bitcoin is still under severe selling pressure after the approval of the Bitcoin ETF. Over the last several hours, the price of Bitcoin has fallen by 8%.

Since the U.S. SEC authorized eleven spot Bitcoin ETFs on January 10, the price of Bitcoin (BTC) has been falling, which has surprised many in the market. A recent pullback by the biggest crypto to $41,900 today caused $338 million worth of positions to be liquidated.

Bears in Control

In an interview with Bloomberg, Anthony Scaramucci, CEO of SkyBridge Capital and a well-known fund manager, discussed the recent drop in Bitcoin prices. According to Scaramucci, sales from the liquidation of assets by Grayscale Investments’ spot Bitcoin ETF GBTC and the insolvent FTX exchange contributed to the current decline.

At the time of writing, Bitcoin is trading at $42,717, down 7.15% in the last 24 hours as per data from CoinMarketCap. Moreover, the trading volume is down 1.98%. 

If the price manages to go below $41,940 then it will likely decline further to test $36,800 support level. On the other hand, if the price manages to go above the $44,300 mark then it will likely test $47,300 resistance level.

As per latest update, trading volumes for the new Bitcoin ETFs were close to $900 million on their second day. The results on Friday were far higher than the opening day, according to Eric Balchunas, a senior ETF analyst with Bloomberg.

Bitwise and Fidelity were the leading Bitcoin ETFs on day one. A total of $237.9 million was drawn to the first, while $227.0 million was drawn to the second.