Over the last few days, short-term investors have sold around 111,000 bitcoins, equivalent to approximately $5 billion at current prices.
Following the introduction of Bitcoin spot ETFs and a temporary surge in the asset’s value, the subsequent price action and decline in the leading cryptocurrency’s market cap from $49,000 to $41,000 have sparked panic among both long and short traders, explains CryptoSlate analyst James Van Straten. Despite potential losses, Bitcoin speculators are closing their positions in large numbers.
A trader known as Skew has indicated that various market signals suggest that Bitcoin’s recovery from its peak market value will persist. According to Skew, Bitcoin could reach an average value ranging from $42,500 to $42,800 on a daily timeframe. The Relative Strength Index (RSI) is projected to remain above 50/100, with support at $42,250.
On the evening of January 15, Bitcoin was trading at $42,550, experiencing a weekly decline of approximately 4%.
Earlier, companies vying to launch spot Bitcoin ETFs expressed disappointment as the expected upward rally failed to materialize, resulting in an overall 11% drop in the instrument’s initial market value over the week.