1min read
Published on: Jan 15, 2024
#Bitcoin ETF
#Financial Markets
Bitcoin is posting slight gains this Monday morning after a weekend of declines.
Last week saw history being made as the Securities and Exchange Commission (U.S. SEC) finally approved Bitcoin spot exchange-traded funds (ETFs) on January 10th.
Right after the first trading day kicked off on January 11th, BTC’s performance significantly rallied to a level not seen in a while: the $49,000 mark.
The first day, January 11th, recorded trading worth as much as $4.6 billion.
The second day, January 12th, was only slightly modest, with trading worth $3.1 billion taking place.
Source: Yahoo Finance
However, despite the huge hype going around in the markets, the king coin failed at sustaining this rally, with the price dramatically dropping to as low as $41k.
Most short-term traders chose to capitalise on the anticipation of the ETF approvals and decided to quickly exit the market after taking profits.
Bitcoin positions worth over $90 million were liquidated as the frenzy over ETFs subsided.
The decline in BTC’s value erased all the gains it had achieved since the beginning of this year.
Given the metrics, we can conclude that the launch can be viewed as a mixed bag:
With BTC currently trading at $42,668, a break below $41,000 would correspond to a break below the trend line, which would send a negative signal, with $40,000 as the next target.
Source: BTC/USD, BitDelta/TradingView
On the upside, the $45,000 area is the first major hurdle, before last week's peak at $48,750 and then the key $50,000 threshold.
This article is for informational purposes only and not intended as investment or financial advice. It contains opinions and speculations that are subject to change without notice.
The author and publisher disclaim any liability for decisions made based on the content of this article. Readers are advised to conduct their own research and consult a financial advisor before making investment decisions.
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