QCP Capital believes that the Bitcoin ETF approval could possibly be a sell-the-news occasion thereby pushing the Bitcoin value underneath $40,000, earlier than resuming the following uptrend.
The Bitcoin (BTC) value has registered a robust rally gaining 15% to this point in December and transferring nearer to $44,000, the place it encounters sturdy resistance. At press time, Bitcoin is buying and selling at $43,649 with a market cap of $854 billion. Because the Bitcoin spot ETF launch approaches inside the subsequent three weeks, QCP Capital gives insights into the potential announcement timeline and market dynamics. The ETF suppliers have resolved the final sticking level regarding ‘cash only’ versus ‘in-kind’, aligning with the SEC’s ‘cash only’ demand.
Whereas the launch nears, QCP Capital emphasizes the chance that the precise demand for the BTC spot ETF could initially fall wanting market expectations. This anticipation units the stage for a traditional ‘sell the news’ state of affairs within the second week of January.
QCP Capital anticipates topside resistance for BTC within the 45-48.5k area, with a doable retracement to 36k ranges earlier than the uptrend resumes. Regardless of the anticipated short-term adjustment, the agency expresses confidence within the eventual continuation of the upward pattern, probably after a couple of weeks, because the market positions for a strong rally main into the BTC halving.
For these already lengthy on BTC, QCP Capital suggests a tactical play, recommending promoting coated calls to leverage elevated forwards and vols. Moreover, they suggest contemplating the acquisition of out-of-the-money places as a strategic transfer to navigate the post-ETF dip.
A Bullish Tackle Bitcoin
Stories from Matrixport and CryptoQuant have a bullish tackle the Bitcoin ETF as we method the Bitcoin ETF approval within the subsequent two weeks. Matrixport anticipates SEC approval for Bitcoin Spot ETFs in January, foreseeing a possible surge that would drive Bitcoin costs past $50,000 by the top of January 2024.
Drawing parallels to historic occasions, such because the launch of CME Group’s Bitcoin Futures in 2017, Matrixport highlights a major value escalation main as much as such milestones. Throughout the six to seven weeks between the affirmation of the Bitcoin futures launch and their precise buying and selling, costs skilled a notable +196% improve.
TV commercials from numerous ETF candidates are rising, contributing to Bitcoin value help. The race for ETF dominance is ready to accentuate over Christmas, probably pushing Bitcoin to $50,000 if Bitcoin Spot ETFs achieve approval.
In accordance with a report shared with CoinDesk on Wednesday, CryptoQuant, an on-chain evaluation agency, predicts a possible surge in bitcoin costs to at the least $50,000 within the quick time period. The anticipated demand for bitcoin is because of the launch of a number of spot exchange-traded funds (ETF) within the US, the upcoming halving, and the general progress in broader inventory markets, pushed by price cuts.
“On-chain valuation and network metrics signal bitcoin remains well inside a bull market and may be targeting $54,000 in the medium term and $160,000 as this cycle price top in 2024,” noted CryptoQuant.
