On the first day of trading for the Spot Bitcoin ETFs the $BTC price wicked up to $49,000. Was this the local top for bitcoin, and will we now see a decent market correction?
Sell-off or last price spike?
The first Spot Bitcoin Exchange Traded Funds (ETFs) have been approved by the SEC and they have now started trading. Would it not be quite likely to see a sell-off here given that the price has reached the 0.618 fibonacci, and also that traders could be pulling their profits out of bitcoin and putting them into other assets?
This would be a logical thing to happen, although markets can certainly do the most illogical thing, especially in the short term time frame. Therefore another retest of $48,000 and even above wouldn’t be out of the question.
Weekly close could show $BTC top is in
Source: Trading View
That said, many will be assuming that this is indeed the bitcoin top, at least for the next few weeks, and possibly even months. A rather long wick is now showing above the $BTC price, and if this is still manifest at the weekly close this would be rather bearish for bitcoin.
Which support will hold?
Source: Trading View
If a correction is to come, some analysts are calling for a relatively shallow dip of around 23% down to $39,000 or $37,000. This is certainly a support area to consider. However, the deeper correction to $30,000 would confirm the bull market base price structure and would be incredibly healthy for the rest of the bull market going forward.
Having said all this, bitcoin has just made another higher high, and should it retest any of the aforementioned supports it will have registered another higher low.
Looking out to the next couple of years bitcoin is doing what it has done since it was created, and that is to serve as a reliable store of wealth which the average Joe and Jane should be able to put their failing currency into in order to protect themselves.
Disclaimer: This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
Source: https://cryptodaily.co.uk/2024/01/is-the-bitcoin-top-now-in