Following the sharp decline on January 12, Bitcoin price tested the $42,000 area for the fifth time. This negative impact had a negative impact on altcoins; MATIC Coin and others have lost 5% at the time of writing. Despite ETF approval, BTC is trading in a shallow range.
Why Isn’t Bitcoin Rising?
After the first Bitcoin ETF was approved in the USA, BTC price was struggling to not fall below $42,000. It could not have been predicted that the good news coming at the end of the 10-year struggle would have such a small impact on prices. While BTC was around $25,000, increasing expectations for the spot approval of the Bitcoin ETF pushed the price to $49,000, but this occurred during a very turbulent period and therefore the price could not hold on to the top.
Even if there are no huge losses, the bulls cannot find the strength to push prices up. On the other hand, I wrote that BTC has exited the parallel channel that has been rising since December. If the decline gains momentum, the immediate target is likely to be around $38,000. The target cumulative value of cryptocurrencies is $1.4 trillion.
The decline may reverse once the market digests the ETFs’ volume reduction confirmation and GBTC sales return to normal levels. Currently, losses are likely to continue as a result of the breakdown on the technical front. The Fed meeting to be held at the end of the month also increases concerns.
