Bitcoin Price Records Worst Streak After ETF Approval, BTC At $34,000 Possible?
The world’s largest cryptocurrency Bitcoin has been facing selling pressure ever since the Bitcoin ETF approval last week. It also recorded the largest losing streak over the last month, with four consecutive days of negative closing. As of press time, the Bitcoin Price is down 0.22% trading at $42,557 levels with a market cap of $834 billion.
Bitcoin ETF – Sell The News Event
In the aftermath of the debut of nearly a dozen ETFs, featuring major players like BlackRock Inc. and Fidelity Investments, Bitcoin experienced a brief surge to a two-year high surpassing $49,000. However, the subsequent downturn appears to align with the anticipated “buy-the-rumor, sell-the-fact reaction,” as noted by Tony Sycamore, a market analyst at IG Australia Pty. Based on chart patterns, Sycamore envisions a potential decline to the $38,000 to $40,000 range for Bitcoin.
According to Bloomberg Intelligence’s senior ETF analyst Eric Balchunas, the newly launched US spot funds garnered a net inflow of $819 million during the initial two days of trading. Notably, BlackRock’s iShares Bitcoin Trust attracted $500 million, while the Fidelity Wise Origin Bitcoin Fund secured $422 million.
On the flip side, the Grayscale Bitcoin Trust, with a massive $26 billion in assets and the largest in its category, witnessed significant outflows totaling $579 million after its conversion into an ETF last week. The fund’s previous closed-ended structure, coupled with trading at a discount to its underlying holdings last year, had prompted speculation on the narrowing of the gap, impacting the recent fund outflows.
Bitcoin Price Can Retest A Low of $34,000
Renowned crypto analyst Ali Martinez shared insights on Bitcoin’s current trajectory, noting the adherence to a discernible parallel channel. Martinez suggests that Bitcoin encountered resistance around the upper boundary of the channel, situated at $48,000.
Courtesy: Ali Martinez
Consequently, the projection indicates a retracement for Bitcoin, targeting the lower boundary at $34,000. Following this retracement, a subsequent rebound is anticipated, with Bitcoin aiming to revisit the upper boundary at $57,000. This analysis provides a perspective on potential price movements within the identified channel.
Besides, Martinez also highlighted a notable development in the Bitcoin Miners’ Position Index (MPI), revealing a spike to 9.43 on January 12. The elevated MPI suggests that miners engaged in a higher-than-usual volume of Bitcoin ($BTC) movements, implying a potential inclination toward sales.
Courtesy: Ali Martinez
Despite a recent correction in Bitcoin price, Martinez advises vigilance, emphasizing that additional selling by miners has the potential to exert further downward pressure on prices. This insight underscores the importance of monitoring miner activity as a potential influence on the broader Bitcoin market. However, some Bitcoin enthusiasts see the Bitcoin price dip as an additional buying opportunity for targets of $200K.