Bitcoin Technical Charts Indicate Potential Market Fall, says Analyst
According to YouTube analyst Crypto Banter, Bitcoin technical charts suggest that a market fall is on the horizon. This comes despite the recent approval of spot Bitcoin ETFs, which was seen as a positive development for the industry. However, instead of rallying, Bitcoin prices have continued to decline, dragging the rest of the market into the red.
Money Flowing Out of BTC
The analyst points out that for success to occur, more money should be flowing into Bitcoin than out of it. While there was $1.2 billion in net inflows in the previous week, Grayscale, the largest holder of BTC in the world, saw $579 million flow out. This suggests that coins are starting to hit the market.
GBTC Trading at a Discount
The analyst notes that Grayscale has been liquidating its BTC holdings by sending them to multiple addresses since January 12. As a result, GBTC began trading at a 3% discount. With many sellers trying to exit their positions, there is likely to be a market dump as money flows out of GBTC and into spot Bitcoin ETFs.
Institutions Turning to Ethereum
On a positive note, the analyst highlights that Ethereum open interest has increased, indicating that some BTC trade has shifted to ETH. Institutions are also unwinding their positions. The question now is whether Bitwise and other providers can attract more BTC buyers.
Shooting Star Pattern on Weekly Chart
Examining Bitcoin’s technical charts on a weekly time frame, the analyst identifies a shooting star pattern. This pattern typically signals a potential market fall and consists of a small-bodied candlestick with a long wick at the top and little to no wick at the bottom. However, the analyst compares this chart to the aftermath of the Coinbase IPO, where BTC experienced a local top before going parabolic. Nonetheless, some pullback is expected before any significant upward movement.
Conclusion: Bitcoin Price Declines
As of now, Bitcoin is trading at $42,271, down 1% in the last 24 hours. The technical charts and market trends indicate a possible market fall in the near future. It remains to be seen how Bitcoin will perform amidst the liquidation of GBTC holdings and the introduction of spot Bitcoin ETFs.
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