Bitcoin Price Analysis: BTC Falls As Spot ETF Hype Gets Over, Can We See More Drop?

Bitcoin Price Analysis: BTC Falls As Spot ETF Hype Gets Over, Can We See More Drop?


In a turn of events eagerly awaited by the cryptocurrency community, the hype surrounding the approval of the Bitcoin Spot ETF has subsided, leading to a noticeable decline in the price of Bitcoin.

The US Securities and Exchange Commission (SEC) greenlit the listing and trading of various spot Bitcoin exchange-traded products (ETPs) on Wednesday, January 11, 2024.

Since the approval announcement, Bitcoin has experienced a 16.03% drop, plummeting from $48.9K to $41K over the course of just eight days.

Bitcoin Chart
Source: TradingView

Current Bitcoin Price Analysis:

As of now, Bitcoin is navigating a critical juncture as it hovers around its support level at $40,850. The unfolding scenario is poised to play a pivotal role in determining the future trajectory of the cryptocurrency. Two potential outcomes are worth noting:

Bitcoin-Price-Chart-Analysis
Source: TradingView
  1. Sustaining Support: Should Bitcoin manage to sustain and find support at its current level, there is a possibility of a bullish upswing.
  2. Support Breach: Conversely, if the current support level is breached, the price of Bitcoin may experience a further downturn. The next support level lies at $37,756, representing a potential additional decrease of -6.83%. A subsequent breach at this level could lead to Bitcoin falling to $35,502.

The coming days will be crucial in discerning whether Bitcoin can weather the current storm or if further declines are on the horizon.

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