Far from being identical to the predictions around bitcoin for the year 2024, that of CryptoQuant arrives like lightning in the cryptosphere. Indeed, this data provider states that the queen of cryptos is preparing to undergo a correction. This is sure to significantly affect its price, to the point of being valued at $32,000 in case the SEC validates the BTC Spot ETFs.
Bitcoin, a descent to $32,000?
Most bitcoin predictions 2024 are “ structurally bullish »specified our colleague in his recent analysis of the price of this “ single asset “. However, a possible deterioration in consumer sentiment », in correlation with the rising unemployment ratecould bring its price back down, between 25,000 and 30,000 dollars.
And speaking of descent, CryptoQuant has just delivered a rather stunning prediction in the eyes of bitcoiners.
“ Bitcoin is expected to drop as low as $32,000 next month following the potential approval of a Bitcoin ETF, according to data provider CryptoQuant. »
According to CoinDeskthis new prediction signed CryptoQuant would have links to approval of spot Bitcoin ETFs which should occur between January 6 and 10. Which is completely at odds with the general trend in terms of bitcoin forecasts: because who says green light for Exchange Traded Funds says massive influx of money in the cryptocurrency market, and obvious rise in prices.
CryptoQuant emphasizes that this event would be associated with a “Sell The News”. Translated into French “selling the news”, this phenomenon refers to a situation of ephemeral bull run (rising asset prices, leverage, positive sentiment, etc.) which generally results in a fall. In other words, a “bull trap”.
How to explain this fall? In fact, savvy traders are capitalizing on overcrowded long trades, and this is sure to bring down leveraged investors. Because they will be forced to close or liquidate as soon as they notice that the price is depreciating.
“ Short-term bitcoin holders know high unrealized profit margins of 30%, which historically preceded price corrections (red circles). Additionally, short-term holders are still spending bitcoin at a profit, while rallies typically occur after short-term losses are realized. », Specify CryptoQuant analysts.
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