CryptoQuant analysts predict two possible scenarios that may arise before spot BETFs are approved. discussing.
According to analysts, based on the average price at which BTC holders purchased, support and resistance levels could potentially follow a “bullish” or “bearish” scenario as expected.
2 Scenarios Before Bitcoin Spot ETF Approval and How to Respond
Quicktake Post by @MAC_D46035
NEWS CONTINUES BELOWThis post explains how to analyze the Bitcoin price support and resistance using on-chain data of the average unit price of #Bitcoin holders
Thread🧵
NEWS CONTINUES BELOW— CryptoQuant.com (@cryptoquant_com) January 9, 2024
According to the first bullish scenario, Bitcoin price could repeat its local top of $48,500 before the US Securities and Exchange Commission (SEC) makes a final decision. In this case, the profits of short-term holders will exceed 8%, showing signs of “overheating”. Additionally, this indicator will increase the likelihood of a correction. This level could become the main resistance level for its price. $48,500 represents the average price for long-term holders on current data.
As we reported as Koinfinans.com, in a downward scenario, the Bitcoin price is likely to lose 2% to 30% of its value. Historical data also proves this: after active growth, the value usually tends to decline. If this repeats, key support levels lie at $30,000 and $34,000. The first indicator is the average price of long-term holders, the second is the average price of short-term holders.
On January 8, BTC price once again updated its annual maximum to $47,218. The last time the figure reached this level was in April 2022. According to CoinMarketCap, Bitcoin is currently trading at $46,477 at the time of writing. The asset’s value has strengthened by 7% in the last 24 hours.
The fate of spot Bitcoin ETFs remains uncertain. The crypto market is awaiting a decision on filings from the SEC this week.