Bitcoin Price Faces Bearish Momentum: Analyst Predicts Further Collapse

The bitcoin price seems to be on a downward trend in recent days, despite the approval of several Bitcoin exchange-traded funds (ETFs).

Analyst signals ongoing decline in Bitcoin market.

🔎 Key Information: The recent approval of Bitcoin Spot Exchange-Traded Funds (ETFs) has failed to bolster the price of Bitcoin. Despite initial expectations of a price surge, the cryptocurrency has undergone a significant decline. According to Bitcoinhyper, a cryptocurrency analyst, this decline could potentially lead to an even further collapse in price. Let’s take a closer look at the current state of Bitcoin and the factors contributing to its bearish momentum.

📉 Bitcoin’s Decline and Rejection

Bitcoinhyper noted that BTC experienced an upswing in price to $49,000 following the approval of BTC spot ETFs by the SEC. However, the market did not react as anticipated, and the price witnessed a notable decline of about 16%. This sharp drop caught retail investors off-guard, as they had expected the price to increase. In reality, the approval of the ETFs did not have the positive impact on Bitcoin’s price that many had hoped for.

Source: Bitcoinhyper on YouTube

🔍 Market Perception and Liquidation

Despite the decline, the liquidations during this period were not as significant as expected. Approximately $18.8 million in short positions were liquidated, which is less than anticipated. This news may have caused traders to become overconfident and ignore the possibility of a correction. However, Bitcoinhyper warns that with such a collapse in price, the market could see a massive bout of liquidation.

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📥 Inflow of Capital and Lack of Positive Impact

Following the approval of Bitcoin spot ETFs, a significant inflow of capital occurred, with Bitcoin seeing a $1.18 billion influx in digital assets funds worldwide. However, this substantial increase in capital has not yet translated into a boost in Bitcoin’s price. On January 15, Bitcoin’s price dropped below the support level of $42,000, causing traders to turn their attention to other cryptocurrencies like Ethereum.

🎯 Future Outlook and Potential Ethereum ETF

At present, the market’s enthusiasm for Bitcoin ETFs has significantly diminished. Many discussions are taking place concerning the potential for an Ethereum ETF. Bitcoin is currently trading at $42,951, indicating a decline of over 7% in the past seven days. The trading volume has increased by 3.86% in the last 24 hours, while the market cap has increased by 0.75%, according to CoinMarketCap.

BTC trading at $43,040 on the 1D chart | Source: BTCUSDT on Tradingview.com

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Q&A Section

Q: Why did the approval of Bitcoin ETFs not lead to a price surge? The approval of Bitcoin ETFs by the SEC did not have the desired impact on Bitcoin’s price due to market sentiment and expectations. Retail investors assumed that the ETF approval would prompt a price increase, but instead, Bitcoin experienced a decline. This disappointing outcome may have been a factor in diminishing market enthusiasm for Bitcoin ETFs.

Q: What is the potential for an Ethereum ETF? With Bitcoin ETFs failing to generate the expected boost in price, discussions have shifted towards the possibility of an Ethereum ETF. Many believe that an Ethereum ETF could have a more significant impact on Ethereum’s price and attract new investors to the cryptocurrency.

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References

1. How Low Can Bitcoin Go? CryptoQuant Head Reveals Target
2. Bitcoin Price Prediction: SEC Approves BlackRock’s Spot Bitcoin ETF – $1,000,000 BTC Possible?
3. How Spot Bitcoin ETFs Could Catapult BTC Price To $500,000, According To This Crypto Trader
4. Spot Bitcoin ETFs: What to Expect on Day One of Trading
5. Bitcoin ETF Countdown: SEC’s Decisive December Deadline – Here’s the Latest

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Now that you’ve learned about the current state of Bitcoin and its potential future trends, what are your thoughts on the cryptocurrency’s bearish momentum? Share your opinions and predictions in the comments below! Don’t forget to like and share this article if you found it helpful. Let’s dive into the world of cryptocurrencies together! 💰🚀

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