NEWSLETTER
A recent market update by trading firm QCP Capital has provided insight into how the price of bitcoin would react if a bitcoin Spot ETF is approved in January. The company predicts that there could be a major pullback before any bullish move.
bitcoin could fall to $36,000
QCP Capital predicts that bitcoin could retreat to around $36,000 before an uptrend resumes. At the same time, they expect bitcoin to face overhead resistance between the $45,000 and $48,500 region. These projections are based on what they expect to happen if the Securities and Exchange Commission (SEC) approves bitcoin spot ETFs in January.
QCP Capital is of the opinion that the actual demand for these mutual funds might not live up to market expectations at first. If so, it set things up for the classic “sell the news” scenario, which would cause the price of bitcoin to fall.
The trading firm had previously opined that bitcoin could reach its all-time high of $69,000 if these bitcoin Spot ETFs raised enough capital upon their launch. Then, they also warned that the approval could end up being a news-selling event if inflows into these funds were below par. Now, they seem to be suggesting that the latter is likely to happen.
However, they do not expect bitcoin to remain low for long as they are confident that bitcoin's recent resurgence will continue at some point. They estimate that this will probably happen after a few weeks, especially as traders prepare for a strong rally before the next big event: the bitcoin Halving. This event is projected as what will cause the next bull run.
<img decoding="async" class="aligncenter size-medium" src="https://technicalterrence.com/wp-content/uploads/2023/12/Cryptocurrency-Trading-Firm-Expects-Bitcoin-to-Fall-to-36000-Here39s" alt="Tradingview.com bitcoin Price Chart” width=”3266″ height=”1530″ loading=”lazy”/>
btc price at $43,278 | Source: BTCUSD on Tradingview.com
All attention will focus on ethereum
ethereum could be the next big bet once the pending bitcoin spot ETFs are approved. QCP Capital anticipates the market and quickly turns to ethereum spot ETFs. As with bitcoin Spot ETFs, several asset managers have also filed applications to launch a fund offering direct exposure to ethereum.
In anticipation of a possible approval of ethereum spot ETFs, some cryptocurrency investors could move their capital from btc to eth ahead of an expected rally in the price of ethereum. The trading company stated that they are “leaning on very strong support at the ETHBTC cross at the 0.051 level.”
QCP Capital, however, believes any approval of an ethereum spot ETF is still “many months” away. Meanwhile, they expect ethereum price to see notable rallies based on such speculations. This could be something similar to what happened with bitcoin, as the flagship cryptocurrency enjoyed major rallies thanks to Spot btc approval rumors.
Featured image from Freepik, chart from Tradingview.com
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