Bitcoin Price Correction to $22,000 Becoming Likely as BTC Derivatives Signal Bearish Trends
Summary:
Bitcoin could potentially undergo a price correction down to $22,000 as bearish tendencies emerge in BTC derivatives. Investor sentiment has worsened following recent events, including the Grayscale Asset Manager's victory against the SEC and the delay of spot BTC ETF requests. The fading hype around spot Bitcoin ETFs and ongoing regulatory actions against major exchanges have contributed to the declining morale of cryptocurrency investors. Furthermore, concerns about potential DOJ indictments and lawsuits against exchanges add to the bearish sentiment. Experts suggest that a retracement to $22,000 is the most likely scenario.
Bitcoin (BTC) could experience a price correction down to $22,000 as BTC derivatives display bearish tendencies, according to analysts. The recent victory of Grayscale Asset Manager against the U.S. Securities and Exchange Commission (SEC) and the delay of multiple spot BTC exchange-traded fund (ETF) requests by the SEC have negatively impacted investor sentiment. Despite hopes for an ETF approval, the fading hype around spot Bitcoin ETFs and ongoing regulatory actions against major exchanges like Binance and Coinbase have contributed to the deteriorating morale of cryptocurrency investors. Additionally, concerns about potential DOJ indictments and lawsuits against exchanges add to the bearish sentiment. The recent decline in U.S. inflation and the reduction of the Federal Reserve's assets also undermine Bitcoin's inflation protection narrative. Derivatives data further suggests decreasing demand from bullish traders, and options markets indicate a shift towards bearish sentiment. Given the regulatory uncertainties and the inability to sustain positive price momentum, experts consider a retracement to $22,000 as the most likely scenario. However, it is important to note that the views expressed in this article are for informational purposes only and should not be taken as legal or investment advice.
Published At
9/4/2023 2:45:29 PM
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