Investors in the cryptocurrency market remain cautious about potential price movements of Bitcoin, even with the possibility of the SEC approving spot Bitcoin ETF applications. A popular theory suggests that the market may experience a slow recovery following sudden losses. Investors are viewing this development with a “sell the news” perspective.
Michaël van de Poppe, CEO of crypto trade firm MN Trading, shared his long-term outlook on social media, stating that Bitcoin ETFs would significantly impact the market, potentially injecting $30-60 billion in liquidity and triggering a bull cycle similar to the Dot com bubble or the 2004-2011 Gold rush.
According to TradingView data, Bitcoin has been trading within a narrow range since early December, with a weekly close around $44,000. A rebound was observed near the $43,000 level with the opening of Asian markets, and at the time of writing, Bitcoin was trading at $45,190.
Another popular analyst, Skew, emphasized the importance of maintaining the 200-period simple moving average (MA) and exponential moving average (EMA) on hourly timeframes. Skew suggested that reclaiming the weekly open and holding the hourly 200EMA and MA as support would be initial triggers for a bullish stance.
Skew also commented on the current state of funding rates, which were overly optimistic before the recent liquidation volatility but have now returned to sustainable levels. The direction of the price will be determined by the spot market, but there is likely a significant number of long positions in the market, which could require support from spot bids moving forward.