The excitement surrounding the long-awaited Bitcoin ETF has diminished, leading to a market correction. Analysts were correct in predicting a pullback post-ETF launch, with a potential for a more significant price drop due to decreased interest in Bitcoin on major exchanges.
On January 15, crypto commentator ‘MartyParty’ suggested that Bitcoin would face a ‘Royal Flush’ event before its halving, as seen with Binance, which maintains a daily volume of approximately $34 billion despite past events, keeping it as the largest exchange by volume.
MartyParty added that events triggering a $39,500 price could liquidate all long positions opened since December 4. This is expected to resemble the pre-halving cycle, potentially resulting in a 20% correction.
Recalling the 50% market correction in 2020, which was not solely due to the halving but also coincided with the onset of COVID-19, analysts also consider a 30% pullback possible, which could drive Bitcoin’s price down to $32,800, clearing all long positions since October.
The analyst expressed that such a correction would open doors for highly desirable new long positions and spot entries for Bitcoin and altcoins. Another prominent analyst, CrediBULL Crypto, noted the significance of a bearish weekly candlestick closure but suggested a bullish structure upon closer inspection. Bitcoin’s price experienced a drop to $41,750 with the Asian market opening but later recovered to $42,700, following a spike to $49,000 the previous week due to ETF excitement.