Bitcoin's ETF Launch Overlooked as Market Focuses on Grayscale Trust Outflows
Summary:
Bitcoin (BTC) exchange-traded funds (ETFs) launched in January did not significantly impact prices as traders focused more on outflows from the Grayscale Bitcoin Trust (GBTC). Bitcoin's activity remained enticing to investors at lower levels despite this. Factors to be considered in the crypto market currently include historical patterns such as Bitcoin’s average February gains, the forthcoming BTC halving in April, and movements in top cryptos like Ethereum (ETH), BNB, Solana (SOL), Cardano (ADA) and others. Traders are advised to do their due diligence in this uncertain market.
Despite the January rollout of Bitcoin (BTC) exchange-traded funds (ETFs), they turned out to be insignificant in propelling prices upwards, as traders shifted their focus to Grayscale Bitcoin Trust (GBTC) outflows, completely disregarding inflows into the other ETFs. This demonstrates that traders were eager to leverage the news to sell and pocket their profits. But on a positive note, Bitcoin didn't languish below the $40,000 mark for too long, an indication that investors are still attracted to lower levels. The next key trigger for Bitcoin is the halving event scheduled for April.
Bitcoin's average monthly increase of approximately 12% in February, as per data from CoinGlass, with the exception of 2014 and 2020, is another bullish sign. Therefore, the question that arises is whether Bitcoin can emulate its robust historical performance this February, and will altcoins move in tandem with Bitcoin? The answer might lie in the charts of the top 10 cryptos.
For the past few days, Bitcoin has been trading within a range between the 20-day exponential moving average of $42,365 and a high of $44,700. If the $44,700 barrier is breached, a rally to $49,000 is likely, which will be aggressively defended by the bears. However, if the price dips under the 20-day EMA, it would suggest that control is shifting to the bears with selling possibly intensifying below $41,394.
Ether (ETH), despite being boxed in the $2,100 to $2,400 range, remains bullish with attempts to push prices past the upper limit. A successful break above $2,400 might open up the pathway for a rally to $2,700.
BNB slipped below the 20-day EMA ($304) on January 31, whereas Solana (SOL) turned down from the comfortably sitting resistance at $107 on the 30th of January and rebounded off the moving averages on the 1st of next month.
Sellers pushed down XRP below the $0.50 support on January 31, and a break above the $0.51 resistance could put a rally to the 20-day EMA ($0.53) in play. On the other hand, Cardano (ADA) persists with its trade within the descending channel pattern, indicating sustained pressure by bears.
Avalanche (AVAX) dropped below the 20-day EMA ($34.29) on January 31, but the bears failed to take advantage. Dogecoin (DOGE) has traded below the 20-day EMA ($0.08) for the past couple of days, but $0.07 support remains unchallenged.
Polkadot (DOT) was dragged below the neckline of the head-and-shoulders pattern on January 31, but bears couldn't maintain these lower levels, while Chainlink's (LINK) stagnant movement finally settled on the upside, displaying a break above $17.32 on February 2, implying that the bulls have taken charge. All these market movements underline potential risks and investment strategies, and due diligence should be exercised.
Published At
2/2/2024 8:57:04 PM
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