Is The Bitcoin Price Correction Post BTC ETF Correction To $42k Healthy?

Jitters are spreading across the crypto community like wildfire raising questions about whether Bitcoin price will continue with the correction from its 2024 peak at $49,000 to below $40,000.

There was a modest price increase after the Securities and Exchange Commission (SEC) approved a bunch of spot BTC ETFs but the short-lived trend fizzled out, leaving the coin spiraling below $42,000.

Although bulls tackled the bearish situation bolstering the price above $43,000 this week, their influence did not last long, considering an ongoing correction to $42,370.

According to the popular analyst Michaël van de Poppe, with more than 685k followers on X, Bitcoin is eager to consolidate within the range high at $50,000 and the range low at $38,000 as the hype around the ETF fades away.

#Bitcoin is eager to consolidate within this range, the ETF hype slowly fading away.

The launch of the ETF was one of the best performing launches in terms of net inflow and volume, and will show in the coming years.

Potential resistance at $46K and support at $39-41K.

— Michaël van de Poppe (@CryptoMichNL) January 17, 2024

Despite the mundane price action after the approval, many analysts and experts like Bloomberg’s Eric Balchunas have pointed out that the Bitcoin ETF emerged as one of the best-performing launches based on net inflow and volume. Many believe that the impact of the ETF will be seen in the coming years.

Let me put into context how insane $10b in volume is in first 3 days. There were 500 ETFs launched in 2023. Today, they did a COMBINDED $450m in volume. The best one did $45m. And many have had months to get going. $IBIT alone is seeing more activity than the entire ’23 Freshman…

— Eric Balchunas (@EricBalchunas) January 16, 2024

How To Navigate Bitcoin Price Correction And Market Uncertainty

Pressure is mounting on Bitcoin to sweep through lower levels below $42,000. The largest crypto holds below all three major MAs applied to the four-hour chart, starting with the 20 Exponential Moving Average (EMA) (blue), the 50 EMA (red), and the 200 EMA (purple) compelling holders to stay on the edge not knowing whether to sell right away or hold on until BTC finally figures out the next move.

Support in the yellow band will continue to play a vital role in Bitcoin’s technical outlook. A rebound from this area would raise the stakes for the bulls. This, coupled with renewed interest could create a suitable environment for an anticipated climb toward $50,000.

Recommended: Best Altcoins To Buy January 17: ETH, TIA, SUI

Bitcoin price chart | Tradingview

Based on the Moving Average Convergence Divergence (MACD) indicator likely to send a sell signal, Bitcoin price is in danger of being accepted in the lower narrow range between $38,000 and $42,000.

Surging exchange inflows, on the other hand, may further hamper Bitcoin’s performance. Data shared on X by James Van Straten highlighted a massive inflow of 86 BTC, the second-largest on Coinbase.

Two-week view of net inflow/outflow of #Bitcoin through @coinbase, on a 10-min resolution.

On Friday, we saw an 86k #Bitcoin inflow, which was the second largest ever registered on the exchange.

— James Van Straten (@jvs_btc) January 17, 2024

When investors are preparing to sell, they move their holdings to exchanges. This action has the potential to significantly intensify the selling pressure, leading to more pain.

However, investors could be getting ready for the next major event — the Bitcoin halving. Miner rewards would be halved sometime in April, significantly reducing supply.

The impact of the halving, which has historically led to parabolic price breakout in Bitcoin, is expected to be even more powerful if the BTC ETFs gain traction increasing demand.

Related Articles

  • Injective Price Prediction: Is Steady Consolidation Prelude to INJ Surging Past $50?
  • Here’s Why Dogecoin Price Dip to $0.8 May Bolster 25% Upswing
  • Crypto Price Prediction For January 17: LINK, CHZ, RNDR


Click to rate this post!
[Total: 0 Average: 0]
Show More