Decline in the Price of BTC Continues, Indicts  Local Top

Decline in the Price of BTC Continues, Indicts  Local Top

Analysts and investors have raised concerns regarding a potential local peak due to the acceleration of the recent decrease in Bitcoin (BTC) prices. With a high of $48,969 in January 2024, Bitcoin has significantly declined since breaking out of a channel in November. A major turning point for the cryptocurrency was reached in January when the Bitcoin Exchange-Traded Fund (ETF) was approved.

Using the Channels and trendlines technical analysis, the bitcoin saw a bullish surge in November when it broke out of the channel, setting new records. Currently, concerns have been aroused by the ensuing drop, particularly when the price gets closer to crucial support levels.

Experts Predict Bitcoin’s Future, To Hold Below $35,000

Different experts are coming to make predictions on BTC’s future. A cryptocurrency industry watcher and analyst Honey_xbt, on his X official handle, pointed out some of the simple horizontal aspects of Bitcoin activities.

Honey_xbt also wrote that the Bitcoin momentum witnessed a significant shift. Honey_xbt predicted a $50,000 rejection by Bitcoin to drop lower to $35,000. The daily technical analysis of the trading time frame corresponds with the weekly bearish chart. This is so because of the current Relative strength index (RSI) readings and the price action.

The chart indicates that the price of Bitcoin dropped from its horizontal support level, which it maintained for the next 48 days. There wasn’t a major price recovery after the price drop, and the BTC has continued to trade below the price since then. 

Investors Apply Precautionary Measures, BTC May Fall Further by 5%

Analysts also utilize the Relative Strength Index (RSI), a popular momentum oscillator, to evaluate the strength of a trend. Positive momentum is shown by readings above 50 and in an upward trend, which implies that bulls are still in the lead.

However, readings below 50 can indicate a change in momentum that is more favorable to bears. To manage these swings, investors frequently combine technical research, fundamental considerations, and market emotion.

If the drop in the BTC price continues, it may fall by 5% to a 0.5 Fibonacci retracements level to settle at 12% to the 0.618 Fibonacci level, at $34,000 or $36,900. Amid the bearish trend, the BTC still has the propensity to return to the $41,000 price level, which will eventually push it to a high of $44,000.

Spot ETFs Linked To Price-drop, Goldman Sachs Picks Interest in Spot ETF 

The sharp drop in Bitcoin prices has led to worries about a possible local peak. According to data shared on the BeInNews platform, any inductor that reads over 50 or more,  accompanied by an uptrend, means that the bull still has an edge.

However, Goldman Sachs is looking to join its colleagues in the finance industry to leverage the newly approved Spot by Bitcoin ETF. They are working on sending an application to the United States Securities and Exchange Commission (SEC) for approval. This is coming at a time when JPMorgan, Cantor Fitzgerald,  Jane Street, and Chase have been picked to play an Authorized Participant (AP) role.

Meanwhile, the most anticipated simplification of liquidity has been grossly touted as a major propeller of bullish trends in Bitcoin. The AP role has to do with creating and profiting from the ETF shares, as a way of making sure that the product is at par with the assets. 

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Chad Butler
About Author

Chad Butler

Chad Butler, a renowned name in crypto journalism, excels in translating complex blockchain topics into lucid prose. His astute analyses and timely updates make him a trusted voice in the cryptocurrency landscape. Through his articles, Chad consistently offers readers an informed and insightful perspective on the evolving digital market

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