Analyzing Two Scenarios Before Bitcoin Spot ETF Approval
Analysts from CryptoQuant have identified two possible scenarios that could unfold before the approval of spot Bitcoin (BTC) ETFs. These scenarios are based on the support and resistance levels of BTC, analyzed using the average price of BTC holders.
Bullish Scenario: Reaching a Local Peak
In the bullish scenario, BTC could reach a local peak of $48,500 before the final decision by the SEC. This would indicate market overheating, with short-term holders exceeding 8%. However, this level may become a major resistance level for Bitcoin as it is also the average price for long-term holders.
Bearish Scenario: Potential Price Drop
In the bearish scenario, BTC could experience a price drop of 2-30%. Historical data suggests that after active growth, the value usually falls. Key support levels in this case would be $30,000 and $34,000, representing the average prices of long-term and short-term holders respectively.
Current Bitcoin Price and Market Status
On January 8, BTC reached its annual maximum at $47,218. At the time of writing, it is trading at $46,477 with a 7% increase in value over the past 24 hours. The fate of spot Bitcoin ETFs remains uncertain as the crypto market awaits a decision from the SEC.
Hot Take: Uncertainty Looms Over Bitcoin ETF Approval
The approval of spot Bitcoin ETFs hangs in the balance as analysts speculate on potential scenarios based on support and resistance levels. The bullish scenario suggests a local peak at $48,500, while the bearish scenario indicates a possible price drop of 2-30%. Bitcoin’s recent surge to its annual maximum adds to the anticipation, but the market remains uncertain. All eyes are on the SEC’s decision, which will have a significant impact on the future of BTC and the crypto market as a whole.
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