Bitcoin (BTC) quickly rose in the past few months as the anticipation of the approval of its related spot exchange traded funds (ETFs) built up. When the big official announcement came from the Securities and Exchange Commission (SEC), however, its momentum quickly dissipated when it failed to reach the 50s and hundreds of thousands as some people preached. It turned out that conservative estimates were, in fact, the closest to reality as the super bullish expectations were dashed by the combination of a premature social media announcement and a “sell the news” event. Now, the consensus is looking at a bearish scenario where the digital asset could dive to $40K.
It was Indeed a “Sell the News” Event
The devil was in the details as the countdown ticked to zero. BTC price surged during the Ber months from $25K to above $40K. This made some analysts suspect that it may be a “buy the rumor” event heading to a “sell the news” scenario while others claimed that the price of the spot Bitcoin ETFs may have already been priced in the charts.
Fast forward to a week after the approval of spot Bitcoin ETFs by the SEC, and the contrarian views have been proven right. Since BTC tapped the $49K range in some exchanges last week, it has been on a steady decline going as low as $41,500.
As shown in the chart here, things have been getting uglier and they could get worse, so brace yourselves. Experts are now saying that it could further dip to $40K. 10x Research headed by Markus Thielen even noted to its clients that the correction could find a dynamic support level of $38,000 as signaled by RSI divergence.
This outlook was echoed by FxPro analyst Alex Kuptsikevich. The market expert claimed that a $40K retracement is just “within bounds of typical corrections.”
But Wait for It…
These are nothing but short-term happenings in the world of Bitcoin though. Analysts project a rise following the steep correction.
A few hours ago, Thielen said good news is about to come just in time for the Super Bowl 2024. During that time, Bitcoin may finally start trading for the halving. So, until then, let’s distract our “paper hands” with the much anticipated sporting event of the year because good rewards are coming for the “diamond hands.”
Bitcoin Update
As of this writing at 4:30 AM UTC, Bitcoin is trading at $42.81K, which only moved between $42,086 and $43,566 on the 24-hour chart. Trading volume is up by over 10% within that period though as around $23.97 billion BTC moved between wallet addresses.