The Bitcoin Price Drops After ETF Approval
The price of Bitcoin (BTC) surged to nearly $50,000 following the approval of its ETF. However, it experienced a decline on January 13, resulting in a bearish candlestick.
Bitcoin’s Bearish Candlestick
An analysis of the weekly time frame reveals that BTC has been increasing since the beginning of the year. It broke through the $31,000 resistance area in October and continued to rise.
On January 11, BTC reached a high of $49,000, one day after the approval of the Bitcoin ETF. This breakout occurred above an important resistance area.
However, on January 13, Bitcoin experienced a significant drop, resulting in a long upper wick and a bearish candlestick.
Analysts’ Outlook
Cryptocurrency traders and analysts have a bearish outlook on the future trend of BTC. AltStreetBet predicts a price fall based on a large bearish divergence in the weekly time frame.
CryptoMichNL suggests that while the Bitcoin ETF may mark a short-term top, the price will eventually increase. Other analysts, such as JJCycles and Inmortal, use fractals to suggest that BTC has reached a local top.
BTC Price Prediction: Is the Local Top in Place?
The 2-day time frame indicates that BTC may have reached a local top based on wave count analysis. The Elliott Wave theory is used to identify long-term price patterns and determine trends.
The most likely count suggests that BTC has entered wave four in a five-wave upward movement. The sub-wave count indicates that an extended third wave has been completed. BTC is currently trading near the $41,500 support level.
If BTC breaks below this support level, it could lead to a 14% drop to the $36,800 support level. This correction could last for several months.
Hot Take: Bearish Sentiment Surrounds BTC Price
Despite the recent surge in price, analysts have a bearish outlook on the future of Bitcoin. The approval of the Bitcoin ETF has caused some short-term volatility, but there are signs of weakness in the market.
Traders and analysts are predicting a price fall based on bearish divergences and fractal analysis. However, it is important to conduct your own research and consider multiple perspectives before making any financial decisions.
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