More than a week after the approval of 11 spot Bitcoin ETFs in the United States, the event is increasingly looking like a classic ‘buy the rumor, sell the news’ scenario. After closing last week on a bearish note, with a shooting star weekly candlestick, Bitcoin price has continued to bleed in the past five days.
According to the latest market data, Bitcoin price dropped approximately 3 percent since Monday to trade around $41k during the early Asian session on Friday. The sudden dip in the past 24 hours led to more than $248 million in crypto liquidations, with the majority consisting of long traders.
Bitcoin Succumbs to Heightened Selling Pressure
The Bitcoin network has recorded heightened on-chain activities in the past few days. Notably, Bitcoin miners, short-term holders, and whales have been spotted depositing huge amounts of coins in centralized exchanges after registering profitable trades in the past year.
With Bitcoin having reached a psychological resistance of around $44k and a post-spot ETF top of around $49k, more analysts are confident a correction is on the horizon.
What Next for BTC Price Action
There we go, taking liquidity beneath those lows. That was the final part that needed to happen for #Bitcoin.
Beneath $41K is the start of buying the dip; markets are down ~15-20% already.
If it drops to $36-39K, you can expand.
I love buying dips. pic.twitter.com/vzRjoIXDRy
— Michaël van de Poppe (@CryptoMichNL) January 18, 2024
According to a popular crypto analyst based in the Netherlands, Michaël van de Poppe, Bitcoin price continues to present perfect buying opportunities as the macro bull cycle is in the early stages. Moreover, the fourth Bitcoin halving is about three months away from happening, which historically triggers the macro crypto bull rallies and more cash inflow through the spot Bitcoin ETFs is expected to accelerate in the coming quarters.
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Qadir AK
Qadir Ak is the founder of Coinpedia. He has over a decade of experience writing about technology and has been covering the blockchain and cryptocurrency space since 2010. He has also interviewed a few prominent experts within the cryptocurrency space.
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