Sinking Bitcoin
Bitcoin is currently sinking in the crypto market due to a lack of new inflows. Without a new impulse, it is struggling to gain momentum.
- Bitcoin is below its daily and weekly moving averages, indicating further downside unless there is a significant push to bring the price back up.
- Support for Bitcoin is found at the $26,000 level, but it is steadily pushing against it. A break could lead to a drop to major support levels at $24,000, $21,000, $19,000, or even back to the lows.
- The bitcoin bull market cycle is lengthening, with declining returns in each succeeding bull market.
- Bitcoin may only reach $100k or potentially $150k this bull market, which is a modest increase compared to previous bull market gains.
- Lower prices can be beneficial for long-term investors as they can buy more.
Momentum Can Be Regained
An impending decision for a bitcoin spot ETF could potentially change bitcoin’s trajectory in a decisive way. The SEC needs to decide whether to grant institutions the capacity to launch their own spot ETFs, which could provide the necessary momentum.
- The SEC may delay the decision, but a favorable outcome in the Grayscale vs SEC case could compel the SEC to approve a spot ETF.
- Bitcoin, regardless of its direction, offers an alternative to the unfair and corrupt monetary system, which is being recognized by large institutions.
- It is important to ignore mainstream media misdirection and focus on the potential of bitcoin as an asset of the future.
Hot Take: Bitcoin’s current sinking trend may continue unless there is a significant push to regain momentum. However, the decision on a bitcoin spot ETF could provide the necessary impulse for a potential turnaround in the market. While lower prices may benefit long-term investors, it is essential to stay informed and navigate the crypto market wisely.
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