The price of Bitcoin has decreased after the launch of the Bitcoin ETF.

The price of Bitcoin has dropped by more than 20% since reaching its recent high of $48,700 USD at the beginning of the month, following the successful launch of the Bitcoin Exchange-Traded Fund (ETF) in the United States. After the approval of the Bitcoin ETF, investors are closely watching for a potential announcement of an Ethereum ETF, which could positively impact the overall digital currency market.

According to analysts from Deutsche Bank, nearly $4 billion in funds have flowed into Spot Bitcoin ETFs, particularly those operated by BlackRock and Fidelity. However, an estimated $2.8 billion has been withdrawn from investments in Grayscale, which used to be one of the largest Bitcoin trusts globally. This withdrawal was influenced by the collapse of FTX, leading to a approximately 40% reduction in the Net Asset Value (NAV) of Grayscale's GBTC fund.

Despite the decline in Bitcoin's price due to the sale of assets from Grayscale's trust, fundamental market drivers remain unchanged. Furthermore, the establishment of Bitcoin ETFs has fueled continuous growth in the use of digital currencies. Institutional interest remains high, and new blockchain technologies are continuously being developed. These factors indicate that the upward trend may resume, especially with the disappearance of the impact from Grayscale.

The digital currency market has demonstrated resilience when faced with challenges in the past, especially Bitcoin, which has recovered rapidly over the past year, driven by limited supply and increasing demand.

After the approval of the Bitcoin ETF, investors are now anticipating the upcoming Bitcoin halving event, expected in April. Historically, Bitcoin has experienced significant value appreciation after halving events. This event may incentivize miners to hold off selling profits, contributing to price stability.

The momentum of Bitcoin halving has slowed down after the establishment of the Bitcoin ETF, leading to miners increasingly selling profits. Additionally, it is speculated that Bitcoin ETFs have purchased Bitcoin ahead of their launch, with expectations set at $28,000. Currently, the 24-hour trading volume has decreased, standing at $20.4 billion compared to an estimated $24 billion.

Techical analysis data (5H)

Resistance: 40175.4, 40508.7, 40787.4

Source: Investing.com

Buy/Long 1: If the price touches support in the price range of 39284.7 - 39563.4 but cannot break the support at 39563.4, you may set a TP at approximately 40508.7 and SL at around 38951.4 or according to your acceptable risk.

Buy/Long 2: If the price breaks the resistance in the price range of 40175.4 - 40508.7, you may set a TP at approximately 40787.4 and SL at around 39284.7 or according to your acceptable risk.

Sell/Short 1: If the price touches resistance in the price range of 40175.4 - 40508.7 but cannot break the resistance at 40175.4, you may set a TP at approximately 39284.7 and SL at around 40787.4 or according to your acceptable risk.

Sell/Short 2: If the price breaks the support in the price range of 39284.7 - 39563.4, you may set a TP at approximately 38951.4 and SL at around 40508.7 or according to your acceptable risk.

Pivot point January 24, 2024 05:07 PM. GMT+7