Bitcoin Price Suffers Post-Spot ETF Blues, Drops 7% To $43,200
January 12 2024 - 9:00PM
NEWSBTC
The introduction of Bitcoin (BTC) exchange-traded funds (ETFs) has
triggered a significant sell-off, leading to a sharp decline in the
Bitcoin price. After gaining approval and commencing trading on
Thursday, the ETFs have prompted a “sell the news” event, causing
Bitcoin’s value to plummet from its initial trading price of
$46,500 at the time of approval to a low of $43,200 within a matter
of hours on Friday. Over the past 24 hours, Bitcoin, the largest
cryptocurrency by market capitalization, has experienced a 7% drop.
Its gains over the past 30 days have been limited to a mere 4%,
erasing much of the progress made during that period.
Additionally, as selling pressure continues to mount following the
approval, there are indications that the Bitcoin price may face
further downward pressure. Bitcoin Price Under Pressure CryptoQuant
analyst J.A. Maartunn observed significant sell orders in Bitcoin’s
two-week chart on Wednesday. Notably, three clusters of sell
orders were positioned between $46,100 and $48,000, comprising
stacks of 755, 1,031, and 794 BTC, respectively. According to the
CryptoQuant analyst, such patterns are typically associated with
market tops, unless these orders are later withdrawn or executed.
Related Reading: Cardano’s 2024 Kickoff: First Two Weeks Show Major
Updates, Report This influx of sell orders may help explain the
lackluster response to the ETF approvals until now, as it appears
that selling pressure has been building up. However, the situation
has intensified even further. According to Maartunn,
additional sell orders were detected on Friday, indicating that the
seller is not yet finished. Two substantial sell orders have been
placed just above the current Bitcoin price: one for 894 BTC at
$44,000 and another for 1,071 BTC at $45,100. These developments
suggest that market participants are taking advantage of the ETF
news to offload their Bitcoin holdings, leading to increased
selling pressure and a subsequent price decline. The market’s
stabilization following this period of heightened selling pressure
remains uncertain. The introduction of ETFs was believed to bring
about heightened institutional interest and potentially drive up
the Bitcoin price. However, it is important to note that the
impact of these ETFs is expected to unfold over the long term,
rather than being evident within days, weeks, or even months. It
will likely take years to fully gauge the effects and consequences
of ETF integration on the Bitcoin market. Bitcoin’s Bullish
Structure Remains Intact Amidst the ongoing selling pressure,
several support lines may potentially halt the downtrend and bring
positive news for the Bitcoin price and BTC bulls. Although Bitcoin
has already lost its $44,000 support level, there is another
crucial threshold at $42,700 that could prevent further decline. If
this level holds, there is a chance for Bitcoin to regain the
$43,000 mark and reverse the downward momentum. If the $42,700
support is breached, additional support lines come into play. These
include $42,300, $41,700, and $41,200, which act as the last
barriers before a potential test of the $40,000 support level. The
$40,000 mark holds significance as it represents the final support
before a potential dip towards $38,000. Related Reading: Bitcoin
Erases $49,000 ETF Rally As Coinbase Users Take To Selling However,
there is a positive aspect for Bitcoin bulls to consider. The
current bullish structure of the cryptocurrency remains intact as
long as the dip does not breach the $29,900 mark. This level marked
the beginning of the current bullish uptrend, and its preservation
would ensure the maintenance of the overall positive market
structure. Featured image from Shutterstock, chart from
TradingView.com
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