Bitcoin Price Plunges 7% to $43,200 Following ETF Launch
The recent approval and commencement of trading for Bitcoin exchange-traded funds (ETFs) have sparked a sell-off in the cryptocurrency market, resulting in a sharp decline in the Bitcoin price. After initially trading at $46,500 following the ETF approval, Bitcoin’s value plummeted to a low of $43,200 within hours on Friday. This represents a 7% drop in the past 24 hours and erases much of the progress made in the last 30 days, which was limited to a mere 4% gain.
As selling pressure continues to mount following the ETF approval, there are indications that the Bitcoin price may face further downward pressure. Analysts have observed significant sell orders in Bitcoin’s two-week chart, suggesting that market tops may be forming. Additionally, additional sell orders placed just above the current Bitcoin price indicate that the selling pressure is not yet finished.
Market participants are taking advantage of the ETF news to offload their Bitcoin holdings, leading to increased selling pressure and a subsequent price decline. The impact of these ETFs is expected to unfold over the long term, and it will likely take years to fully gauge the effects on the Bitcoin market.
Amidst the ongoing selling pressure, several support lines may potentially halt the downtrend and bring positive news for the Bitcoin price and BTC bulls. The $42,700 support level is crucial, and if it holds, there is a chance for Bitcoin to reverse the downward momentum and regain the $43,000 mark. However, breaching this support level would open the door to further declines, with additional support lines at $42,300, $41,700, and $41,200.
Despite the recent price drop, Bitcoin’s bullish structure remains intact as long as it does not breach the $29,900 mark. This level marked the beginning of the current bullish uptrend, and its preservation would ensure the maintenance of the overall positive market structure.
It is important to note that this article is provided for educational purposes only and does not represent financial advice. Investing in cryptocurrencies carries risks, and individuals are advised to conduct their own research before making any investment decisions.