Bitcoin Price Expected to Drop to $36,000 in Case of Bitcoin ETF Rejection
Date: 2024-01-06 Author: Dima Zakharov Categories: BLOCKCHAIN
In the volatile world of cryptocurrency, a prominent figure in the industry, Whale, co-founder of the cryptocurrency casino Dinobet, has made a bold prediction. He anticipates a significant decline in the price of Bitcoin if the Securities and Exchange Commission (SEC) rejects all ETF applications in January.
According to Whale, Bitcoin's price could plummet to as low as $36,000 or $38,000 if the SEC decides not to give the green light to any ETF proposals. This forecast holds merit as a negative verdict by regulatory authorities or a delay in approving high-probability derivatives applications could trigger a bearish trend in the Bitcoin market. Evidence of this can be seen in the cryptocurrency's sudden 9% drop on January 3rd, following Matrixport's report on the rejection of spot ETF trading proposals.
On January 2nd, Bitcoin's price broke above the upper trendline of a contracting triangle but failed to maintain its position due to a significant sell-off, resulting in the liquidation of long positions totaling $169.4 million. The lines of this pattern are expected to intersect in early February, leading to the assumption that Bitcoin's price volatility may decrease throughout January unless the creation of ETFs is sanctioned by U.S. authorities.
The width of the contracting triangle suggests that in the event of a downward breakout, Bitcoin could depreciate to at least $38,897. Conversely, if the upper trendline is breached, the cryptocurrency could surge to $48,129 or higher. The Bitcoin market remains on edge as investors await the SEC's decision and brace for potential market shifts.
