Bitcoin’s Potential Retracement
A recent market update by the trading firm QCP Capital suggests that if a Spot Bitcoin ETF is approved in January, Bitcoin’s price could experience a major retracement before any upward movement. QCP Capital predicts that Bitcoin could retrace to around $36,000, facing resistance between the $45,000 and $48,500 region.
This projection is based on the expectation that the Securities and Exchange Commission (SEC) will approve Spot Bitcoin ETFs. However, QCP Capital believes that the actual demand for these investment funds might fall short of market expectations initially, potentially leading to a “sell the news” scenario and causing Bitcoin’s price to drop.
Potential for an Ethereum Rally
If Spot Bitcoin ETFs are approved, QCP Capital anticipates that attention will shift to Ethereum. Several asset managers have filed to launch funds offering direct exposure to Ethereum once Ethereum Spot ETFs are approved.
In preparation for this potential approval, some investors may move their capital from Bitcoin to Ethereum in anticipation of a rally in Ethereum’s price. QCP Capital notes strong support for this shift in the ETHBTC cross at the 0.051 level.
However, QCP Capital believes that an approval for an Ethereum Spot ETF is still several months away. In the meantime, they expect Ethereum’s price to experience notable rallies based on speculation similar to what happened with Bitcoin.
Hot Take: The Impact of Spot Bitcoin ETF Approval
If a Spot Bitcoin ETF is approved in January as predicted by QCP Capital, it could have significant implications for both Bitcoin and Ethereum. While Bitcoin may experience a retracement before an uptrend resumes, attention is likely to shift towards Ethereum as investors anticipate an approval for Ethereum Spot ETFs. This could lead to a rally in Ethereum’s price and potential capital movement from Bitcoin to Ethereum. However, the approval of an Ethereum Spot ETF is expected to be many months away, leaving room for speculative rallies in Ethereum’s price in the meantime.
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