The long-awaited excitement for the Bitcoin ETF has diminished, and the predicted market correction in the cryptocurrency market has begun. However, due to the decrease in interest towards Bitcoin on major exchanges, a more significant price drop could occur. Analysts were right about a potential pullback in the market following the ETF.
The Relationship Between Binance and Bitcoin
On January 15, the well-known cryptocurrency commentator ‘MartyParty’ stated that Bitcoin would encounter a situation called ‘Royal Flush’ by Binance before its halving. Despite the events of the past year, Binance’s daily volume is around 34 billion dollars, keeping it as the largest exchange by volume in the cryptocurrency world.
On the Binance side, events that would trigger a price of 39,500 dollars could result in the liquidation of all long positions opened since December 4. According to the analyst, this situation will resemble the previous halving cycle and will result in a 20% correction.
Due to events in 2020, Bitcoin markets faced a 50% correction. This situation was not only attributed to the halving but also pointed to the concurrent emergence of COVID-19.
Moreover, a retracement of up to 30% is possible, which could bring the BTC price down to 32,800 dollars. Consequently, all long positions opened since October could be cleared.
The analyst made the following statement:
This will open the door to highly desired, life-changing new long positions and spot entries for Bitcoin and all altcoins.
The analyst noted a difference between this and previous cycles, stating that this is a new situation that Bitcoin ETF issuers will face, and added:
They may not want Bitcoin to fall below 40,000 dollars, or they might even defend the previous wick at 41,500 dollars. We will see. When they defend, we will see the bull run begin.
The Latest on Bitcoin
Another well-known analyst, CrediBULL Crypto, shared his views on the matter. He emphasized the importance of the weekly candle close, which seemed bearish, but upon closer inspection, a bullish structure was identified.
The last time we got this candle, people said it happened at the ‘end of the uptrend,’ but in reality, we were right in the middle of a bigger uptrend – the same could be said for what we see now.
BTC fell to 41,750 dollars during the Asian market opening but then recovered to a level of 42,700 dollars.
The Bitcoin price had momentarily surged above 49,000 dollars last week with the excitement of the ETF, but it has since declined to its current level.
