The post Beware of Fake Bitcoin Breakout Amid ETF Approvals, Warns Analyst appeared first on Coinpedia Fintech News
The Bitcoin price has experienced a sharp decline, dropping below the $26,000 mark. Known for its unpredictable price swings, this infamous cryptocurrency is currently facing significant volatility, which has dampened its promising start-of-year bull run. However, it falls notably short of recovering even half of its highest value from the previous year. As a result of a substantial increase in supply at the $30,000 threshold, Bitcoin’s value is now undergoing a consolidation phase, hovering within the $25,000 range.
What lies ahead for you, the investor? Let’s read on.
Market Remains Optimistic But Cautious
The market’s optimism surrounding potential Exchange-Traded Fund (ETF) approvals for Bitcoin is juxtaposed by a stark warning from DonAtl. This industry expert cautions that Bitcoin bulls could be walking into a trap if a spot-based Bitcoin ETF gains regulatory approval. In a recent strategic analysis, DonAtl astutely notes that sellers might seize upon the ETF approval as an opportune moment to unload their Bitcoin holdings. This move could bring more turmoil than prosperity in a short span of time.
DonAtl’s concerns revolve around the possibility that even without an ETF rejection, the market’s course could shift. This scenario raises two possible outcomes: an unprecedented decrease in price or a wave of unfavorable news. Though the precise result remains uncertain, the inherent vulnerabilities of the market do raise legitimate concerns.
Read More: Bitcoin Price Prediction: Can BTC Reach $50,000 in 2023?
Two Scenarios Emerge
In a scenario where the ETF secures approval, it’s projected that the price might only manage to ascend to a range of $32,000 to $35,000, owing to the current market frailty. Conversely, if the ETF is rejected, the price could plummet to the range of $20,000 to $19,000.
Glimmers of Hope
Amidst the prevailing uncertainty, there are glimmers of hope. Recent positive developments include substantial investments from Blackrock and Valkyrie into mining firms, as well as a multitude of Bitcoin and Ethereum ETF applications. The launch of live ETFs in Europe, crypto initiatives in Hong Kong, and a significant Bitcoin investment by Oman contribute to the growing positive sentiment.
Read More: SEC Closer to Approving Bitcoin ETF? Marathon CEO Says Chances Have Crossed 50%
Adding to the optimism are the approaching deadlines for Bitcoin ETF applications by industry giants Blackrock and Grayscale’s GBTC, scheduled for September 1st. These deadlines have sparked expectations of a potential market resurgence. Additionally, the possibility of SEC delays in ETF approvals could lead to a period of market stabilization.
English