After a rapid decline on January 12th, Bitcoin price tested the $42,000 region for the fifth time. This negativity, which adversely affected altcoins, led to a 5% loss in MATIC Coin and others at the time of writing. So why is BTC trading in a narrow range despite ETF approvals?
Why Isn’t Bitcoin Rising?
Following the approvals of the United States’ first spot Bitcoin ETFs, the BTC price is struggling to stay above $42,000. It was unpredictable that the price would have so little effect after a 10-year battle for the big news. Although the rising expectation of spot Bitcoin ETF approvals when BTC was still at $25,000 levels brought the price up to the $49,000 limit, this happened during a very turbulent period, and the price could not remain stable at the peak.
Although there are no major losses, the bulls are unable to find the momentum to push the price higher. On the other hand, we had written that BTC had broken down from the rising parallel channel that started in December. For now, if the decline gains momentum, the target seems to be the $38,000 region. The target for the cumulative value of cryptocurrencies is $1.4 trillion.
The downturn could reverse with the market digesting the ETF approvals that have eroded volumes and GBTC sales returning to normal levels. For now, it seems that losses will continue as a result of the technical breakdown. The end-of-month Fed meeting also plays a role in this nervousness.
