After a period of bullish momentum leading Bitcoin to surpass the $49,000 threshold, the digital currency faced a setback, with prices tumbling to the vicinity of $43,150 subsequent to the approval of U.S.-based spot Bitcoin Exchange-Traded Funds (ETFs) by the Securities and Exchange Commission (SEC).
The decline to around $43,000 on January 12 reflects the market’s volatility in response to the SEC’s nod for spot ETFs, culminating in over $80 million worth of liquidated Bitcoin futures positions in a single day.
BTC falls below $44k pic.twitter.com/xW2sHDRGLj
— Coin Post (@CoinPostMedia) January 12, 2024
As the market navigates through a maelstrom of optimism and caution, with current prices fluctuating between $43,500 and $47,300, analysts and investors are keenly watching for signs of Bitcoin’s next significant price movement.
With Grayscale Investments aiming to convert its sizable bitcoin trust into an ETF and financial pundits like Robert Kiyosaki suggesting a potential rally to $150,000, the stage is set for further developments in Bitcoin’s journey.
The current situation presents a critical juncture to determine whether this dip is a precursor to a buying opportunity or a sign of more corrections to come.
Robinhood Launches 11 Bitcoin ETFs: Expands Access and May Influence BTC Prices
Within a day of CEO Vlad Tenev’s announcement, Robinhood has integrated all 11 approved spot Bitcoin ETFs into its app, significantly broadening market access.
This integration allows individual investors to trade these ETFs in retirement and brokerage accounts, aligning with Robinhood’s mission to democratize financial access.
Users can engage in commission-free transactions of these ETFs much like regular stocks.
Robinhood Launches 11 Bitcoin ETFs, Expanding Access for Investors https://t.co/rrKeHlgzXX
— COINTURK NEWS (@Cointurknews) January 12, 2024
However, this opportunity is currently limited to U.S.-based Robinhood customers, adhering to SEC regulations and including essential risk disclosures.
On their debut day, the 11 ETFs recorded 700,000 transactions with a total trading volume of $4.11 billion, reflecting robust interest from the trading community.
Consequently, the introduction of these ETFs on Robinhood could potentially elevate Bitcoin prices by drawing in retail investors, thereby boosting demand and liquidity.
BlackRock’s IBIT ETF Launch Marks Major Institutional Crypto Move, May Influence BTC Prices
The debut of BlackRock’s spot Bitcoin ETF, IBIT, on the Nasdaq exchange has been notably successful, amassing over $120 million with 2,620 bitcoins in just one day.
As part of the SEC’s 11 approved ETFs, IBIT’s trading volume hit $1 billion on its first day, underscoring the strong institutional interest in cryptocurrency investments.
While BlackRock’s iShares Bitcoin Trust leads in volume, the approval of spot Bitcoin ETFs overall is ushering in a wave of institutional funds into the crypto sector. BlackRock’s early triumph in this arena positions it at the forefront of this emerging trend.
BlackRock’s New Bitcoin ETF Debuts Strong, Holding Over $120 Million in BTC https://t.co/b7h9qu65kg #BitcoinNews #BitcoinETF #Blackrock #EthereumETF
— DeFiBloke (@DeFiBloke) January 12, 2024
CEO Larry Fink’s hint at a potential Ethereum ETF further reflects the firm’s commitment to diversifying its cryptocurrency offerings.
The impressive launch of BlackRock’s IBIT ETF, marked by substantial holdings and trading activity, is poised to positively sway Bitcoin prices, demonstrating an escalating institutional engagement and a potential boost in the broader crypto investment landscape.
Bitcoin Price Prediction
On January 12, Bitcoin (BTC/USD) faced a significant downturn, dropping by 5.82% to a price of $43,662. The pivot point for this cryptocurrency currently stands at $44,300, with immediate resistance levels at $45,175, $45,950, and $47,250.
Support is seen at lower thresholds, specifically at $42,642, $41,470, and $40,570. The Relative Strength Index (RSI) has dipped to 33, suggesting that Bitcoin may be entering oversold territory.
A critical observation from the 4-hour chart is the violation of the upward channel near the $45,000 mark, indicating a bearish shift. Bitcoin has decisively broken below this level, reinforcing a bearish trend. The next crucial point to watch would be around $42,600.
Bitcoin Price Chart – Source: Tradingview
The 50-Day Exponential Moving Average (EMA) is currently at $45,700, higher than the current price, adding to the bearish sentiment.
Given these indicators, the short-term forecast for Bitcoin appears bearish unless it manages to reclaim a position above the $42,600 mark. Traders and investors should closely monitor these levels for potential trend reversals or further declines.
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