The first Bitcoin exchange traded fund (ETF) will be available in the US stock market for another few hours. However, experts still disagree on how this will affect the price of bitcoin.
to the Report The Telegraph Quinn, the day long-awaited digital currency traders, is almost here. The US stock market will start in a few hours and the first Bitcoin ETF will be launched by ProShares. Analysts predict that other ETFs will be launched in the coming days.
Recent data show that traders have strongly resisted sellers’ morning attempts to lower the price of bitcoin to below $ 60,000, and currently the price is in the range of $ 61,000 to $ 62,000. Buyers and sellers are also competing in this area.
Many analysts have predicted that bitcoin will reach $ 100,000 by launching ETFs, but not all analysts agree. Some believe that this uptrend may be due to the good news that has been published about Bitcoin during this period, and eventually investors may sell their shares shortly after hearing this positive news; Like the proverb that says “buy with rumors and sell with news”.
The formation of ascending floors can be natural
A Twitter trader with the username “Cry me a $ COIN” on the social network has little interest in the idea of bitcoin future ETFs, and recently tweeted that recent bitcoin price movements are only part of a normal price cycle. Is.
From what is called ETF [بیت کوین] Will be approved or has been approved, I do not like. From [تشکیل] Do not be surprised by another rising floor. This [کف صعودی] It does not change anything and that is its beauty.
Ascending floors are conditions in which the new price floor is formed higher than the previous price floor.
According to the price chart shown in the chart above, the price of Bitcoin may fall below $ 68,000 in the coming months, after which a new uptrend floor may form near $ 46,000.
Ryan Cantering Clark, another well-known digital currency trader on Twitter, agrees. He says the bitcoin market has been on the rise for a long time due to the approval of ETFs, and now that these financial products have been approved, what else can raise the price in the short term?
Everyone knows what is going to happen, so I think we will face a deeper price correction in the short term.
Do not be overly optimistic
In an in-depth analysis, David Lifchitz, CEO of ExoAlpha, showed in a deeper analysis what might happen next. Lifchitz says that two weeks ago, Bitcoin suddenly started to rise above $ 40,000 and then went up by 50%, and as a result, the digital currency may now face a slight price correction.
Emphasizing that bitcoin prices are rising in the medium term, Lifchitz warned potential buyers:
These ETFs, which follow prices like the Chicago Mercantile Exchange (CME) futures contracts, undermine the current price due to the futures costs of futures trading.
Lifchitz expects more professional traders to continue to use bitcoin futures on the Chicago Mercantile Exchange (CME) or derivatives exchanges. “Old digital currency investors will continue to use direct methods to buy and hold bitcoins,” he said.
The launch of these ETFs is likely to make it easier for small, straightforward investors to access bitcoins with their brokerage account, even after calculating all costs and total profits. [سرمایهگذاری در] They do not receive their bitcoins. In addition, these ETFs create new arbitrage opportunities for smart traders, something Wall Street is skilled at.
A model that can bring the price to $ 90,000
Another Twitter user, nicknamed Nunya Bizniz, has published a scenario that could happen to Bitcoin and push its price to a new high.
The business has said:
If the price of bitcoin corrects, could something like this happen? Cup pattern and large handle.
As can be seen in the chart below, this analyst predicts that the price of Bitcoin will fall to $ 53,000 in the short term before continuing its uptrend. He believes that after Bitcoin reaches the main support, the price could rise to $ 98,000.
Also read: Familiarity with 10 technical analysis chart patterns that every trader should know
The total market value of digital currencies is currently estimated at $ 2.463 trillion and the bitcoin dominance rate is 47.3%.