The Bitcoin ETF Approval: Sell the News
Bitcoin’s price has been trading between $40K and $48K since December, following the approval of a spot Bitcoin exchange-traded fund (ETF) by the United States Securities and Exchange Commission. According to DecenTrader’s analysis, the approval of the ETF on January 11th played a significant role in pushing Bitcoin’s price to nearly $49K. However, this presented three reasons to sell: reaching a technical target from a “Cup and Handle” pattern bottom, the 61.8% bear market retracement, and the sell-the-news event surrounding the news of the ETF approval.
The outflows from Grayscale’s Bitcoin Trust (GBTC), which investors couldn’t access until the ETF was approved, also contributed to the decline in Bitcoin’s price.
The Bitcoin Halving and its Impact
Another important factor to consider is the upcoming Bitcoin halving in 2024. DecenTrader suggests that if buying interest occurs before the halving, Bitcoin has around 30 days to go through a corrective phase before experiencing anticipated FOMO demand. The analysts also note that downside risk is limited due to the halving.
Will Bitcoin Reach New All-Time Highs?
DecenTrader believes that history will repeat itself, and it will take around 220 to 240 days following the halving for Bitcoin to reach a new all-time high. They predict this could happen in mid to late Q4 of 2024 but warn of potential choppy price action and another sell-the-news event around the $49K level.
Hot Take: Bitcoin’s Future Outlook
While there are various factors influencing Bitcoin’s price, including recent events like the ETF approval and future events like the halving, it is important to remember that investing in cryptocurrencies carries the risk of capital loss. It’s advisable to consult with a financial expert before making any investment decisions.
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