The potential approval of a spot Bitcoin ETF in the US could lead to a sell-on-the-news scenario, which could put significant pressure on the price of the first cryptocurrency. This was reported by The Block with reference to the report. CryptoQuant.
In support of the thesis, analysts cited data on the “paper” profits of market participants after digital gold surpassed the $40,000 mark.
“Short-term Bitcoin holders have high unrealized profits, at 30%. This has historically preceded price corrections,” the report said.
In addition to traders, miners are also in the black. This is another potentially bearish factor.
“We have seen increased sales among miners over the past few weeks as the price has held above $40,000,” the analysts noted.
According to experts, during corrections in bull markets, Bitcoin gravitates towards the realized price of short-term holders. Taking this into account, in a “selling on news” scenario, the fall may stop at $32,000.
MN Trading founder Michael van de Poppe expressed the opinion that after the potential approval of the ETF, digital gold will reach a local maximum near $47,700. Then the asset will move in a wide range with a lower limit at $38,000.
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#Bitcoin is probably getting topped out around the ETF approval and will move inside a range.
That range, and the recent week, is a signal for strength on the remainder of the markets to catch up.
Ethereum is likely to run to $3,000+. pic.twitter.com/4484VMm8Db
— Michaël van de Poppe (@CryptoMichNL) December 28, 2023
Such a sweeping sideways movement at relatively high levels “will serve as a signal that the rest of the markets need to catch up,” the analyst is sure. In particular, he allowed the price of Ethereum to reach $3,000 early next year.
Earlier, Morgan Creek Digital co-founder Anthony Pompliano expressed the opinion that the SEC’s approval of the first spot Bitcoin ETF in the United States will not lead to a rapid increase in the quotes of the first cryptocurrency.
Trezor analyst Josef Tetek called the potential launch of a new product a potential threat to digital gold.
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2023-12-28 15:32:16
#ETF #approval #adjust #Bitcoin #price #ForkLog
