Bitcoin price continues to fluctuate, and the high profitability has led to bold sell-offs. So, what’s next for crypto? Everyone is focused on ETF approval and we’ve seen notable entries. Although there were significant ETF purchases in just 2 days, profit-taking prevailed. Particularly with the weakening volumes, we saw that these profit sales pushed the price even lower.
Will Bitcoin’s Decline Continue?
BTC closed the last weekly candle with a very long upper wick in red. In the weekly chart, where a red and a green candle have alternated since the week of December 11, we see that the price has been flat for almost 7 weeks. Despite intermittent corrections since the beginning of 2023, the increasing BTC price had surpassed the $31,000 resistance and accelerated its rally in October.
The upward movement caused the price to reach $49,000 the day after the approval of the Bitcoin ETF. However, Bitcoin fell significantly on January 13, creating a long upper wick and a bearish candle.
Although the weekly RSI is above 50, it is weakening, and if we add the negativity in the price, the downward trend is obvious.
Experts’ Crypto Commentary
An analyst known as AltStreetBet points out the bearish divergence in the weekly chart, predicting a significant pullback. Michael Poppe, on the other hand, writes that the Bitcoin ETF may signal a short-term peak, but the price will eventually reach higher peaks.
“However, in the short term, the Bitcoin price is likely to consolidate and take a breath. There are several reasons for this:
– A rotation from GBTC to ETF requires a sale in BTC.
– Institutions rotating from spot Bitcoin to ETF to comply with the regulatory framework.
– Speculators and proprietary firms based on hype are selling (or being stopped) as the hype ends.
– The hype itself is temporarily halting the sudden enthusiasm to buy the real asset until a new event occurs.”
Finally, JJCycles and Inmortal consider 2 different fractals from the years 2016 and 2019.
According to these predictions, we could see a surprising drop to $30,500. However, we still do not know what BlackRock and others might do to revive the ETF excitement throughout the week.
