Bitcoin Stumbles Amid Market Headwinds; Analysts Urge Caution on ETF Optimism
Summary:
Bitcoin (BTC) experiences further losses on December 28, stuck within a stubborn range. The cryptocurrency shows resistance to bullish pushes, with analyst concerns driven by profit-taking and high funding rates. CryptoQuant data reveals increased bid liquidity at the $40,000 support level on Coinbase. Filbfilb, DecenTrader co-founder, urges caution on overly optimistic BTC price forecasts concerning the imminent U.S. spot price exchange-traded fund (ETF) approval. He predicts a likely surge following the approval, highly anticipated by market participants.
On December 28, Bitcoin (BTC) experienced further losses as it continues to struggle within a persistent range, according to data from Cointelegraph Markets Pro and TradingView. The BTC experienced a decrease of $1,500 compared to the daily opening price, demonstrating the dominant influence of overhead resistance. The cryptocurrency has remained confined within a range for over a week.
There are numerous headwinds barring upward movement. As Cointelegraph previously reported, factors such as profit-taking and excessively high funding rates are inducing analyst concerns about future developments. Examining order book dynamics, Maartunn, an analyst at crypto analytics platform CryptoQuant, has observed an augmentation in bid liquidity at the $40,000 support level on Coinbase.
Spot-limit bids on Coinbase, totaling an equivalent of 1,200 BTC or $50 million, were set at $40,000. Trading resource Material Indicators also reported that whales have shown purchase interest within the current range. Small blocks of bid liquidity have risen above the $42k mark, possibly as a strategy to prevent a further decrease. This was shared on the social media platform X (formerly known as Twitter).
A chart accompanying their post represented liquidity performances of the BTC/USDT pair on Binance, the world's largest crypto exchange. Meanwhile, Filbfilb, co-founder of trading suite DecenTrader, warned against overly positive BTC price forecasts. He expressed caution over assumptions concerning the imminent approval of the first Bitcoin spot price exchange-traded fund (ETF) in the United States.
With increasing speculative forecasts on BTC prices following the ETF's debut, Filbfilb observes this as a potential warning sign. If the initial infusion of capital underperforms, a market correction might be on the horizon. He is not the only one to anticipate a market cooldown after the ETF's inauguration, due by January 10, 2024.
Previously, Filbfilb projected a $46,000 BTC price by the April block subsidy halving. He maintains a long-term bullish view, predicting a favourable 2024, and anticipates a surge of some sort following the ETF approval highly anticipated by most market participants. This article does not promote or recommend any form of investment or trading. Investments and trading come with risks and it is advised that readers thoroughly research before making any investment decisions.
Published At
12/28/2023 7:56:17 PM
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