CryptoQuant experts have published a forecast of bitcoin price movement before the likely approval of spot ETFs based on the asset on January 10, 2024. According to one of the scenarios, the price of the coin may fall to $30,000.
In their forecast, experts have identified two scenarios - "bullish" and "bearish". The first provides for the growth of the rate of the asset with a subsequent correction, the second - a sharp drawdown to the support level of $ 30 000-$ 34 000.
In their forecast, experts have identified two scenarios - "bullish" and "bearish". The first provides for the growth of the rate of the asset with a subsequent correction, the second - a sharp drawdown to the support level of $ 30 000-$ 34 000.
"Bullish" scenario
If in this case the rate of the asset reaches $48,500, the share of short-term holders, in whose accounts the cryptocurrency is stored from one day to a week, will reach 8%, experts said.
According to Glassnode, this category of traders controls 675,135 BTC - about 3% of the total number of coins in circulation. At the same time, the chart shows an upward trend:
According to Glassnode, this category of traders controls 675,135 BTC - about 3% of the total number of coins in circulation. At the same time, the chart shows an upward trend:
The CryptoQuant report says that the growth of this figure indicates that the market is overheating. In addition, $48,500 is the average price for medium-term holders, which can also intensify the correction.
"Bear" scenario
CryptoQuant experts noted that in the past, a sharp jump in the bitcoin rate was followed by a 2-30% drawdown. If in the short term the value of the asset declines, the predicted support level in such a case is $30,000-$34,000, the report said.
The first mark is the average price for traders in the 3M-12M category. The second is for holders in the 1W-3M, 18M-2Y category. Notably, both scenarios include a probable rate drawdown, only its depth differs.
In this regard, CryptoQuant experts concluded that the probable approval of spot bitcoin-ETFs generates significant uncertainty and growing risks. Going for which, according to analysts, is not worth it.
This is not the first time that experts have stated about the possible drawdown of the exchange rate due to inflated expectations from the approval of spot bitcoin-ETFs. In particular, according to the analysis of QCP Capital, the price of the asset could fall to $36,000.
The head of the derivatives division of the Bitfinex exchange, Jag Kuhner, shares this opinion. He also pointed to the high probability of correction, but, unlike QCP Capital experts, explained it by profit taking by medium-term holders.
The first mark is the average price for traders in the 3M-12M category. The second is for holders in the 1W-3M, 18M-2Y category. Notably, both scenarios include a probable rate drawdown, only its depth differs.
In this regard, CryptoQuant experts concluded that the probable approval of spot bitcoin-ETFs generates significant uncertainty and growing risks. Going for which, according to analysts, is not worth it.
This is not the first time that experts have stated about the possible drawdown of the exchange rate due to inflated expectations from the approval of spot bitcoin-ETFs. In particular, according to the analysis of QCP Capital, the price of the asset could fall to $36,000.
The head of the derivatives division of the Bitfinex exchange, Jag Kuhner, shares this opinion. He also pointed to the high probability of correction, but, unlike QCP Capital experts, explained it by profit taking by medium-term holders.