On-chain analytics platform CryptoQuant, spot-based Bitcoin He thinks ETFs should prepare for the possible post-expected corrective movement.
CryptoQuant The approval of Bitcoin ETFs this month could be a news sell-off event as BTC investors are currently making significant gains, says a research report.
The platform thinks that traders may take advantage of this event to lock in profits, thus triggering a correction.
Market analysts give a 90% chance of Bitcoin spot ETF approval in the US by January 8-10, 2024. We argue that the ETF approval could be a ‘sell news’ event as Bitcoin market participants sit on large unrealized profits.
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Koinfinans.com As we reported, the US Securities and Exchange Commission (SEC) Bitcoin ETFIf there is a correction in price after confirming the ‘s, CryptoQuant predicts that BTC could drop almost 30% from current prices, based on one metric.
According to the scenario, Bitcoin price may drop to $32,000, which is the realized price of the short-term holder (STH).
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STH realized price is an on-chain metric that tracks the average purchase price of all Bitcoins that have not moved in less than 155 days. A decline in the STH realized price to around $32,000 would erase most of the gains made by investors who purchased BTC in the last five months.