CryptoQuant reveals two possible scenarios for the introduction of spot Bitcoin ETFs.
CryptoQuant analysts have identified two possible scenarios for the price of Bitcoin (BTC) before the approval of spot Bitcoin ETFs. The experts examined the support and resistance levels of the cryptocurrency based on the average price of BTC holders and presented a bullish and bearish scenario.
In the bullish scenario, the price of BTC could reach a local peak of $48,500 before the U.S. Securities and Exchange Commission (SEC) makes its final decision on the ETFs. This would indicate market overheating, as the share of short-term holders would exceed 8%. It also increases the likelihood of a correction. The $48,500 level would become the main resistance level for Bitcoin and is the average price for long-term holders.
On the other hand, in the bearish scenario, the price of BTC could drop by 2-30%. Historical data supports this, as after periods of active growth, the value tends to fall. The key support levels in this case would be $30,000 and $34,000, with the former being the average price of long-term holders and the latter being the average price of short-term holders.
On January 8, the price of BTC reached its annual high of $47,218, a level not seen since April 2022. At the time of writing, Bitcoin is trading at $46,477, with a 7% increase in value over the past 24 hours.
The fate of spot Bitcoin ETFs is still uncertain, as the market awaits a decision from the SEC. Applications for these ETFs are currently under review, and the outcome of the decision is eagerly anticipated.
In related news, Standard Chartered has made bold predictions for the market following the potential approval of Bitcoin ETFs. The crypto community is keeping a close eye on these developments.
