First Spot Bitcoin ETFs Begin Trading in the US Market
After a decade-long wait, the first spot Bitcoin ETFs started trading in the US market on Thursday, generating $4.5 billion in trading volume on its listing day. While this triggered an uptick in the crypto market, Bitcoin continues to face uncertainty.
Bitcoin Price Plummets Following ETF Launch
The Bitcoin price experienced a swift 6% sell-off on Friday, dropping to a daily low of $43,623. This decline occurred just one day after the launch of Spot Bitcoin ETFs, raising questions 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 face demand pressure at the $40,000 and $37,000 support levels.
- The intraday trading volume in Bitcoin is $15.3 billion, indicating a 2.1% loss.
The largest cryptocurrency, Bitcoin, has been undergoing a strong recovery since mid-September when the price rebounded from $25,000. In just four months, the price has grown by nearly 96% to reach a high of $49,000. However, despite the launch of Spot Bitcoin ETFs, Bitcoin struggled to sustain its position above $48,000.
Veteran trader Peter Brandt recently shared his thoughts on Bitcoin and its evolving market dynamics. He suggests 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. Brandt also points out the irony in how many in the Bitcoin community now see regulatory bodies and ETFs as key to their financial success, despite Bitcoin’s core value of independence from governmental control.
Is Bitcoin Price Poised For A Major Fall?
After a four-month rally, it was expected that the Bitcoin price would undergo a period of retracement to consolidate its bullish momentum. The BTC price is currently above the 23.6% Fibonacci retracement level, which is considered healthy for an established trend. If the price falls further, it may find support at $40,000 and $37,000, aligning with the 38.2% and 50% Fibonacci levels.
- Bollinger Band: A flattish upper boundary in the Bollinger band indicator reflects weakness in bullish momentum.
- Relative Strength Index: The daily RSI dropping below 50% indicates rising selling pressure in the market.
Hot Take: Bitcoin Faces Uncertainty Despite ETF Launch
The launch of Spot Bitcoin ETFs in the US market generated significant trading volume but did not provide stability for Bitcoin. The cryptocurrency experienced a sell-off just one day after the ETF launch, raising concerns about its future price movements. Veteran trader Peter Brandt suggests that the potential approval of Bitcoin ETFs could lead to a ‘buy the rumor, sell the news’ scenario, signaling a pivotal shift in the crypto market. As Bitcoin faces a period of retracement, its ability to sustain support levels will be crucial in determining its future trajectory.
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