Bitcoin‘s price continues to fluctuate, with high profitability prompting bold sell-offs. The focus is on the approval of Bitcoin ETFs, which have seen notable entries. Despite significant ETF purchases over two days, profit-taking has dominated, pushing prices down further, especially as trading volumes weaken.
Bitcoin’s weekly chart shows a pattern of alternating red and green candles over nearly seven weeks, with the price remaining flat. Despite intermittent corrections since the start of 2023, Bitcoin’s price had surged past the $31,000 resistance in October, accelerating its rally.
The upward movement saw Bitcoin reach $49,000 the day after the Bitcoin ETF’s approval. However, a significant drop on January 13th resulted in a long upper wick and a bearish candle.
The weekly RSI remains above 50 but is weakening, indicating a clear downtrend when combined with negative price action.
Analysts predict a significant pullback, noting a bearish divergence on the weekly chart. Michael Poppe suggests the Bitcoin ETF may signal a short-term peak but expects higher prices eventually. Short-term consolidation is anticipated due to several factors, including a rotation from GBTC to ETFs, regulatory compliance, and the end of speculative hype.
Comparing fractals from 2016 and 2019, a surprising drop to $30,500 is possible. However, the impact of entities like BlackRock on the ETF excitement and price is still uncertain.