Bitcoin Sell-Off After ETF Approval Raises Questions
Bitcoin (BTC) has seen a sell-off following the approval of a spot exchange-traded fund (ETF), failing to meet the pre-approval hype. After reaching the $49,000 mark, Bitcoin has corrected and is currently trading above the $42,000 support zone. The sell-off has resulted in a loss of $83.91 billion in Bitcoin’s market cap within five days of the approval. On January 10, Bitcoin’s market cap was $915.71 billion, dropping nearly 10% to $831.8 billion. The market cap briefly peaked at $954.6 billion on January 11 before the sell-off intensified.
What’s Next for Bitcoin?
An analysis by trading expert AlanSantana suggests that Bitcoin may experience further correction in the coming days. Santana highlighted that Bitcoin closed the weekly candle as an inverted hammer, a bearish candlestick pattern that typically appears at the top of a trend. He set the correction potential at around a 95/96% probability based on key indicators such as the overbought weekly Relative Strength Index (RSI) and a long-term lower high compared to January 2021.
Bitcoin’s Possible Targets
Santana outlined specific targets for Bitcoin during this bearish wave, including testing support levels at various Exponential Moving Averages (EMA) and the possibility of reaching $20,000 with a surprise move. He mentioned that this bearish wave could last between 2-4 months but also presented it as an opportunity for favorable buying, potentially the last one in 2024.
Bitcoin Price Analysis
As of now, Bitcoin is trading at $42,319 with a 1% drop in the last 24 hours and a 6% decrease on the weekly chart. While the ETF approval was initially seen as a catalyst for Bitcoin, attention has shifted to the upcoming halving event, which historically triggers a bullish trend for Bitcoin.
Hot Take: The Impact of ETF Approval on Bitcoin’s Performance
The recent sell-off in Bitcoin following the approval of a spot ETF has raised questions about the necessity and effectiveness of such products. Despite initial hype, Bitcoin failed to sustain its upward momentum. However, trading expert AlanSantana believes that this correction presents a buying opportunity and could potentially be the last one until 2024. While the bearish wave may last for several months, there is optimism that Bitcoin’s performance will rebound in the long term. As attention now turns to the upcoming halving event, it remains to be seen how this historical trigger will impact Bitcoin’s price.
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