Bitcoin Traders See $48K BTC Price Before ETF ‘Sells The News’
Bitcoin (BTC) hovered around $44,000 at the December 21st Wall Street open, according to analysts, a BTC price correction is “significant”.
The $48,000 BTC price is a sign of “resistance from the upside”.
Data from Cointelegraph Markets Pro and TradingView confirmed Bitcoin trading above the previous week's range.
A breakout occurred a day ago, with BTC/USD rising above $44,300 before reversing.
Still up as much as 6% on the week, the biggest cryptocurrency has given some market participants pause.
“Although a correction seems necessary, the BTC chart continues to look very strong on all timeframes,” the trading group Stockmoney Lizards wrote in part of the latest market update on X (formerly Twitter).
“BTC is forming another ascending triangle at the upper resistance line (~44k).”
Like many others, Stockholm's lizards turned their focus on January 10, 2008. They focused on the upcoming decision on the United States' first bitcoin spot exchange-traded fund (ETF).
Until the ETF decision is made, BTC will continue to shed and break the upper transfer line, he continued, with a recent rally at $48,000.
Even if the announcement itself is positive, it could be a “buy the rumor, sell the news” phenomenon, the analysis warned. In this, Cointelegraph reports, Stockmoney Lizard is far from alone.
“As we finally get closer to launch, we should note that actual demand for the BTC Spot ETF will initially be below market expectations,” trading firm QCP Capital agreed in its own market update in December. 21.
“This set up the well-known ‘sell news' scene in the 2nd week of January. As a result, we expect BTC's high resistance in the 45-48.5k range and a possible retracement of the 36k level to the 36k level.”
A correction will be “good” for Bitcoin markets
A rebound in the mid to late $30,000s remains a popular position to take over the market.
Related: 2 Risks Around Bitcoin ETF Launch That No One Is Talking About
“The chart looks hot and the correction will be good. A drop below $40k could wipe out some used long positions and lead to a return to $38k to $38k,” said Stockmoney Lizards.
“Arguments in favor of this scenario are the rally in need of correction, year-end selling (tax loss selling) and reduced business activity due to the holidays.”
Many #Bitcoin short flows are piling up once again. pic.twitter.com/ojC6K2j3Cr
— Mister Crypto (@misterrcrypto) December 21, 2023
While the update calls such a scenario “less likely” than others, market data shows traders are in a bearish position for a recent push even above $44,000.
According to statistical resource CoinGlass, more than $100 million was poured into crypto short positions on December 20 – the most in two weeks. BTC short liquidity totaled $38.5 million.
This article does not contain investment advice or recommendations. Every investment and business activity involves risk, and readers should do their own research when making a decision.
