Analysts Change Stance on "Sell the News" Concerns, Predict Bitcoin ETF to Positively Impact BTC Price

Optimism Grows for Bitcoin ETF Approval

For the past few weeks, it has been widely believed that the approval of a spot Bitcoin ETF in the United States would trigger a “sell the news” event, causing the price of Bitcoin to drop as traders exited their positions. However, K33 Research has revised its outlook and now believes that a dip in Bitcoin’s price is less likely and that BTC could surge once a Bitcoin ETF is approved.

Last Week’s BTC Selloff Sets the Stage

The recent selloff in Bitcoin was sparked by a report from Matrixport suggesting that the SEC could deny all spot Bitcoin ETF applications this month. This caused BTC to plunge over 7% and triggered liquidations for traders betting on ETF hype. K33 analysts now argue that this dip has actually prepared the market to withstand any selling pressure when a Bitcoin ETF is approved.

Market Improvement and Potential Rise in BTC Price

K33 analysts state that the liquidation cascade last week significantly improved the state of the market. They believe that after last week’s squeeze, the impact of long liquidations is less potent, making the market more robust. As a result, BTC’s price is now poised to rise on excitement surrounding the approval of a spot Bitcoin ETF.

Caution Advised Amidst Volatility

While BTC has fully recovered from last week’s dip and is up 10.34%, K33 analysts caution that no outcome is guaranteed. They expect increased volatility as definitive news about a Bitcoin ETF emerges and advise staying vigilant during this crucial week.

Hot Take: Bitcoin Primed for Surge with Potential ETF Approval

The optimism surrounding the approval of a spot Bitcoin ETF continues to grow as K33 Research suggests that a dip in BTC’s price is less likely and that the market is prepared to handle any selling pressure. Since last week’s selloff, Bitcoin has fully recovered and is showing signs of strength. However, caution is advised as volatility may increase in the coming days. Overall, the market is eagerly awaiting news about a Bitcoin ETF and its potential impact on the cryptocurrency’s price.