Bitcoin market reaching a significant peak, says analyst
According to Crypto Banter, a popular YouTube analyst, the hype surrounding Bitcoin ETFs is beginning to fade, causing investors to start cashing in on their investments.
In a video released on January 12, the analyst reported that spot Bitcoin ETFs had a total trading volume of $4.6 billion, with Grayscale (GBTC) leading the pack. However, upon further examination of the data, the analyst discovered that the high sales of GBTC were due to increased fees and the majority of “old Bitcoin” being held, indicating that there were minimal new investments flowing in. This finding suggests that there is no cause for concern about a market scare or sell-off.
The analyst also analyzed the technical analysis and fundamentals of the market and concluded that they are currently aligned. The analyst pointed to a candle chart to illustrate the typical signs of a local top, with the launch of CME Bitcoin Futures being one of the contributing factors.
However, Crypto Banter firmly believes that this sentiment does not indicate a cycle top or the end of the bull run. Nonetheless, investors are advised to pay attention to the early signs of a potential pullback, as indicated by the daily candle close of Bitcoin.
Taking a broader perspective, the analyst emphasized that the upcoming Bitcoin halving event is expected to drive up demand and price for the cryptocurrency. The analyst mentioned the 96-day countdown to the halving and stated that when viewed on a longer time scale, the small pullbacks in the market are actually significant downturns of 40%.
Although the analyst does not predict a correction of that magnitude, they suggest that a pullback of 20% to a maximum of 30% is possible.
In other news, Robinhood has recently made all 11 spot Bitcoin ETFs available for trading. To stay updated on the latest cryptocurrency news, follow us on Google News.
