Bitcoin price reclaims ground above $46,000 as the spot BTC ETF rally starts to thaw head of approval on Wednesday.
Published 11 hours ago
The crypto community is certain that the Securities and Exchange Commission (SEC) will finally approve multiple spot Bitcoin exchange funds (ETFs) in the US before the end of the day. However, this optimism has not been enough to stop prices from wobbling.
Bitcoin price shot up in a wick to $48,000 on Tuesday following fake ETF approval news. However, the gains accrued from Monday were wiped out as investors reacted on realizing the ETF nod was a result of a hacking event into the SEC’s X account.
Despite the correction, BTC price has managed to uphold support at $45,000, suggesting that a sell-the-news narrative could fail to materialize. Amid the speculation and uncertainty, the breakout could go either way to $50,000 or $40,000.
This analysis seeks to dissect the state of Bitcoin ahead of the ETF and whether investors should prepare for more bleeding or a substantial breakout.
Bitcoin Price Prediction: BTC At Crossroads As ETF Finish Line Approaches
Investors and analysts are anxiously waiting for communication from the SEC over the spot BTC ETF with trading expected to start a few days later. Michaël van de Poppe is among the many experts confident that the decision will be made before the end of the day based on this week’s developments including key updates and refillings by applicants.
Apparently, we’re close to an approval of the ETF given the recent data.
Trading is going live in a few days on the #Bitcoin spot ETF.
Big news!
Note: might be fake. pic.twitter.com/gmiYuUbSsO
— Michaël van de Poppe (@CryptoMichNL) January 10, 2024
Meanwhile, the four-hour chart points to immediate support — one highlighted by the 20 Exponential Moving Average (EMA) (in blue) at $45,570. If respected, Bitcoin price would be suitably positioned to move higher, attracting more speculators and thus may gain momentum.
Read also: Top Altcoins To Buy January 10: Can ETH, OP, SNX Explode on Spot BTC ETF Approval?
Although the Moving Average Convergence Divergence (MACD) indicator dons a slightly bearish outlook on the four-hour timeframe, it has a positive signal on the daily and weekly time frames. This implies that traders should mirror the potential breakout through a long-term outlook before trading on short-term ranges to avoid falling into traps.
Investors transferred more than $2 billion worth of BTC to exchanges based on blockchain data shared by James Van Straten, a leading crypto analyst. This marked the fourth-highest BTC inflow in two years.
Intriguingly, holders still managed to take home $1.3 billion in profit against $750 million in loss. If the transfers to exchanges persist, a sell-off could thaw and materialize following the ETF approval.
Yesterday, over $2B worth of #Bitcoin got sent to exchanges from STHs.
That’s the fourth-highest amount in two years.
$1.3B profit vs $750M in loss (Suspicious, considering yesterday was flat to negative)
Luna selling by this cohort was $2.3B for comparison. pic.twitter.com/31nmHjUhgJ
— James Van Straten (@jimmyvs24) January 10, 2024
For now, Bitcoin is bullish despite the cloud of uncertainties due to the ETF news. Some people see the event as a sell-the-news affair while others believe it could blast BTC price to $48,000 at the very least with projections going as high as $51,000 in the near term.
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The presented content may include the personal opinion of the author and is subject to market condition. Do your market research before investing in cryptocurrencies. The author or the publication does not hold any responsibility for your personal financial loss.
Source: https://coingape.com/markets/bitcoin-price-as-investors-prepare-to-sell-the-news-post-btc-etf-approval-bullish-or-bearish-signal/