Bitcoin at $32,000 in 2024: The Downside of Spot ETFs?

 

CryptoQuant’s prediction is far from identical to the prediction surrounding Bitcoin for 2024, but it comes as a lightning bolt to the cryptosphere. Indeed, this data provider states that the cryptocurrency queen is about to undergo a correction. This will certainly affect its price significantly, to the extent that it will be valued at $32,000 in the event that the BTC Spot ETF is verified by the SEC.

Photo of bear, drop vector, bitcoin logo and mention "2024"

Bitcoin, Down to $32,000?

Most Bitcoin predictions for 2024 are structurally bullish »specified our colleague in his recent analysis of the price of this ” single asset “. However possible deterioration of consumer sentiment », in correlation with rising unemployment ratecould drop its price back down to between $25,000 and $30,000.

And speaking of the downside, CryptoQuant has just delivered a rather stunning prediction in the eyes of bitcoiners.

CryptoQuant surprises by predicting a drop in Bitcoin price after ETF validation

Bitcoin is expected to fall as low as $32,000 next month following the potential approval of a Bitcoin ETF, according to data provider CryptoQuant. »

According to CoinDesk, this new prediction from CryptoQuant should spot bitcoin ETF approval links which should occur between January 6 and 10. Which it totally is contrary to the general trend in terms of bitcoin predictions: because whoever says green for Exchange Traded Funds says massive influx of money in the cryptocurrency market and the apparent rise in prices.

CryptoQuant highlights that this event will be associated with “Sell The News”. Translated into French as “selling news”, this phenomenon refers to a situation ephemeral bull run (rising asset prices, leverage, positive sentiment, etc.) which generally leads to a decline. In other words, a “bull trap”.

How to explain this autumn? In fact, savvy traders profit from crowded long trades and this will certainly knock leveraged investors down. Because they will be forced to close or liquidate as soon as they notice the price going down.

Short-term Bitcoin holders know high unrealized profit margins of 30%, which historically preceded price corrections (red circles). In addition, short-term holders are still spending bitcoins at a profit, while growth usually occurs after short-term losses are realized. », Enter CryptoQuant analysts.

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The blockchain and crypto revolution is in full swing! And on the day the effects are felt by the most vulnerable economy in this world, I will say against all hope that I had something to do with it

DISCLAIMER OF LIABILITY

The comments and opinions expressed in this article are solely those of the author and should not be considered investment advice. Before making any investment decision, do your own research.

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