Bitcoin’s troubled process continues. After the Bitcoin ETF was approved by the SEC last week, declines dominated a market where everyone expected an increase. The decline is unprecedented in recent times and reflects an unexpected losing streak of four consecutive days of negative closes. As of this writing, the BTC price fell by 0.22% to $42,588 and the market volume dropped to $834 billion
Bitcoin ETF – Sell News Event
Bitcoin quickly reached a two-year high of $49,000 after 11 ETF applications, including from giant asset management firms such as BlackRock and Fidelity Investments, were approved and processed.
As crypto analyst Tony Sycamore noted, the subsequent decline revealed a price reaction based on buying rumors and selling facts. According to Sycamore, the price of BTC may drop to the $38,000 to $40,000 price range.
Bloomberg Intelligence senior analyst Eric Balchunas, who has been following Bitcoin ETFs most closely recently, said that $819 million was invested in the newly launched US spot fund in the first two days. .
Among these, iShares Bitcoin Trust, launched by BlackRock, received an investment of $500 million, while Fidelity Wise Origin Bitcoin Fund was another notable company that received an investment of $422 million.
There were also unfavorable conditions in the market. Grayscale Bitcoin Trust, which has a staggering $26 billion in assets and is number one in its field, sent investors into a tailspin last week, creating panic with significant outflows of $579 million following its conversion to an ETF.
Will Bitcoin Price Drop?
Ali Martinez, who has made headlines with his recent analysis, allows predictions regarding the direction of the BTC price and draws attention to the existence of an important parallel channel. According to the chart shared by Martinez (see below), BTC appears to be facing resistance at the top of the channel at $48,000.
On the chart, upside resistance is at $48,000, while Bitcoin’s bottom is at $34,000, and a possible negative situation could push the price to this level. Perhaps a drop to the mentioned levels could cause Bitcoin to rise to the observed upper level. 57,000 USD can be triggered.
Martinez also pointed out another issue. The analyst noted a significant change in the Bitcoin Miner Position Index (MPI), which rose to 9.43 on January 12. The increase in MPI indicates that miners are carrying a larger amount of Bitcoin than usual and may be selling it.
The analyst said that despite the current price correction, these ongoing sales by miners may continue to affect prices, with additional sales likely occurring and driving prices even lower. When we look at the impact of miners on the price, we see how big the impact of miners is on BTC, and investors need to follow this situation closely.
