In the recovery phase Ethereum ETH -0.73% is still trailing behind Bitcoin BTC -2.00%. Seems to be facing resistance, around the M I 200 level. Its currently taking a pause there to ensure price confirmation. Some alternative cryptocurrencies have experienced surges in their prices even reaching record highs. This has sparked renewed anticipation for a spot exchange traded fund (ETF).
However there are those who believe that Bitcoin still has room for a decline. For instance renowned data analysis firm Cryptocont suggests the possibility of a “sell the news” event following ETF approval although this potential outcome has already been widely anticipated. In a report they highlighted lingering risks primarily driven by substantial short term profits in the market an accumulation of profits that stands out significantly compared to previous periods. Historically when the market reaches this level of profit accumulation it often results in a drop.
Recently unexpected news. Likely caused a price drop due to manipulation. Nevertheless it’s important to view any decline as an opportunity to buy if confirmed that the overall trend has reversed particularly signaling a shift from bearishness to bullishness.
However as Bitcoin experienced a drop most long position holders have already closed their positions early as a measure, against risks.
In the term there has been a decrease, in the number of liquidations. A range has formed between $45,700 and $46,300 which seems to be quite popular. If we receive news it’s possible that Bitcoin could break through this range swiftly triggering a large scale liquidation and a rapid increase in its price. When looking at Bitcoins URPD indicator it’s clear that there is already support at the $42,500 level.
For those who are investing in the term it seems that the majority have purchased Bitcoin around this level or even higher than the $27,000 mark. However when we examine the price levels between $41,000 and $44,000 we can see that there is buying happening in these areas. This buying activity serves as support to defend Bitcoins value at around $40,000.
Despite anticipation for the approval of a Bitcoin spot ETF (Exchange Traded Fund) 39% of financial advisors in the United States believe that this goal will be achieved within this year. Therefore it is advisable for investors to approach cryptocurrency market participation with caution and conduct investment research to assess risks.
Many advisors have expressed their desire to purchase Bitcoin for themselves or their clients once a Bitcoin ETF is approved in the United States. According to a survey conducted on this matter 88% of respondents stated they would buy after ETF approval. This high market acceptance of ETFs reflects peoples long term optimism, about Bitcoin.
Moreover it is worth mentioning that there is a growing push for the SEC to give its approval, for the Bitcoin spot ETF, a decision that seems imminent. Should the Bitcoin spot ETF receive the light there is speculation that the price of Bitcoin could exceed $50,000. There are expectations that it may even achieve a record peak before the year concludes.