Bitcoin Price To Drop Below $40K By January End

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Bitcoinhyper opened up about the approval of Bitcoin’s ETF, which got everyone excited. However, the market didn’t respond as expected, and there was a significant drop from $49,000. In this article, we’ll look at why this happened and discuss what could happen next.

Something interesting is that the first day of trading for the Bitcoin ETF had a lot of excitement, but in the days after, the price took a hit. This not-so-great performance is making people wonder if there’s really a strong demand for these types of products in the market.

Bitcoin was doing well, going up to $49,000, but it couldn’t reach the important $50,000 target. Instead, we saw a sudden drop of about 16%, surprising many traders. Despite the ETF approval, the market sentiment changed quickly. Retail traders, thinking the price would go up, were caught off guard by a correction. Interestingly, liquidations weren’t as big as expected during this drop.

Around 18.8 million in short positions were liquidated, but it wasn’t as significant as people thought. The news made traders overly optimistic, overlooking the potential correction. Bitcoin is now around $42,300, holding the weekly support and mid-level of a horizontal range. This suggests a possible local top, raising questions about a larger correction.

It’s important to notice that the market is moving away from being excited about spot Bitcoin ETFs. Now, people are talking more about the possibility of a similar product for Ethereum (ETH). This change is affecting the price of Bitcoin. Because Bitcoin’s price went up for several days before the ETF approval, there’s a chance it might fall below the $40,000 support level.