While the Bitcoin price continues to linger above $43,000, QCP analysts recently published their latest market assessment. The experts, who had shared a definitive bearish view before the last BTC rally, admittedly made incorrect predictions in the last quarter. However, their spot-on targets in previous comments make their expectations for 2024 noteworthy.
Crypto Predictions for 2024
Analysts who had previously predicted that closures above $32,000 were hardly possible for BTC according to the Elliot wave theory had released a new bottom expectation. However, this was met with increasing optimism for ETF approval and the excitement for 2024.
In their latest market analysis, the experts wrote;
“There is less than three weeks left for the BTC Spot ETF launch. It could be announced at the market close on January 5th or between January 8-10, 2024.
“The final issue between ‘cash only’ and ‘in-kind’ has also been resolved, as almost all ETF providers have given up on finding a compromise and accepted the SEC’s ‘cash only’ requirement.
As we approach the launch, we must note that the actual demand for the BTC Spot ETF is likely to fall below market expectations. This creates a classic ‘sell the news‘ scenario in the second week of January.
Therefore, we expect a pullback towards $36,000 after resistance between $48,000-45,000 for BTC.”
The Crypto Bull Run of 2024
There is a chance that the ‘sell the news’ event may not happen this time because the ETF will continuously increase liquidity with institutional demand. A contraction in exchange supplies and FOMO supported by institutional volume due to the Spot ETF is expected. Whether the volume will be at the expected level is hard to predict, but giants like BlackRock are addressing a massive qualified investor base holding over $20 trillion in assets. This means that people with money will have the opportunity to buy BTC in a secure manner for the first time, which could disappoint those expecting a ‘sell the news’ scenario.
QCP analysts continued their market commentary saying;
“While the market is positioning for a strong rally due to the BTC halving, we are confident that the uptrend will eventually continue (perhaps in a few weeks).
For those already in long-term BTC trades, a tactical play could be to sell some covered calls to take advantage of high forwards and volatility and perhaps trade at post-ETF dip levels.
ETH here could be an interesting delayed play because the market’s expectation could quickly shift to an ETH spot ETF, potentially leading to transitions from BTC to ETH. We also rely on very strong support at the 0.051 level in the ETH/BTC pair.
We think any ETH spot ETF is still months away. However, this will not prevent BTC spot ETF providers who have recently been approved from immediately applying for an ETH spot ETF. Such headline excitement, whether justified or not, could create some speculative rises in the price of ETH.
Finally, this will be our last market update for the year. We wish everyone a Merry Christmas and hope you enjoy the end of this unforgettable and eventful year.”
