📉 Bitcoin's 8% Drop: A Tactical Play in the Bull Market?
🔍 Funding fees: A Key Indicator
"BTC has witnessed an 8% fall, a notable move in the crypto sphere. Interestingly, this drop aligns with a shift in funding rates. Previously, we observed a correction at a funding fee of 0.05%. This time, just before the downturn, the rate hovered around 0.04%. Such funding rates are crucial indicators, often hinting at the market's overall health. As the rates cool down to near zero, they pave the way for potential price accelerations.
📊 Understanding the Market Dynamics
The recent downturn appears to be more about futures than spot sales. Analyzing the market patterns, it's clear that a significant portion of the drop was due to stop-losses and liquidations of long positions in futures. This is a classic strategy in a bull market, where the market operators aim to trim the excess of long positions, a necessary 'shave' to maintain balance.
🔍 Spot Sales vs. Futures Movements
Why am I convinced about minimal spot sales during this dip? Historically, substantial price drops were often triggered by FUD or negative news, leading to real spot volumes as traders rushed to sell their assets. These movements often coincided with a spike in gold prices, as investors moved from high-risk assets like Bitcoin to safer havens like gold. However, this time, we're seeing a different pattern. The gold price isn't rallying; it's actually continuing its downtrend.
🐋 Whales at Play: A Strategy Shift
This shift indicates a strategic move by large market participants. In earlier phases, FUD was a tool to induce selling, enabling whales to accumulate at lower prices. But now, the game has changed. There's no reliance on FUD or significant spot sales. The current objective seems to be gathering liquidity from futures in preparation for a potential rally, possibly towards the $50K mark.
🔮 Looking Back to Look Forward
Those who've experienced previous bull markets might recall similar patterns. Such strategic moves are not uncommon and often precede significant price movements.
🔍 Funding fees: A Key Indicator
"BTC has witnessed an 8% fall, a notable move in the crypto sphere. Interestingly, this drop aligns with a shift in funding rates. Previously, we observed a correction at a funding fee of 0.05%. This time, just before the downturn, the rate hovered around 0.04%. Such funding rates are crucial indicators, often hinting at the market's overall health. As the rates cool down to near zero, they pave the way for potential price accelerations.
📊 Understanding the Market Dynamics
The recent downturn appears to be more about futures than spot sales. Analyzing the market patterns, it's clear that a significant portion of the drop was due to stop-losses and liquidations of long positions in futures. This is a classic strategy in a bull market, where the market operators aim to trim the excess of long positions, a necessary 'shave' to maintain balance.
🔍 Spot Sales vs. Futures Movements
Why am I convinced about minimal spot sales during this dip? Historically, substantial price drops were often triggered by FUD or negative news, leading to real spot volumes as traders rushed to sell their assets. These movements often coincided with a spike in gold prices, as investors moved from high-risk assets like Bitcoin to safer havens like gold. However, this time, we're seeing a different pattern. The gold price isn't rallying; it's actually continuing its downtrend.
🐋 Whales at Play: A Strategy Shift
This shift indicates a strategic move by large market participants. In earlier phases, FUD was a tool to induce selling, enabling whales to accumulate at lower prices. But now, the game has changed. There's no reliance on FUD or significant spot sales. The current objective seems to be gathering liquidity from futures in preparation for a potential rally, possibly towards the $50K mark.
🔮 Looking Back to Look Forward
Those who've experienced previous bull markets might recall similar patterns. Such strategic moves are not uncommon and often precede significant price movements.
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The possibility of early approval of spot bitcoin ETF
The SEC is likely to notify the 14 asset managers vying for the spot bitcoin ETF by Tuesday or Wednesday of next week, before the January 10 deadline. Fund management firms that have reached the end of their year-end deadline may be able to launch their product by January 10.
These companies include Ark Invest, 21Shares, Valkyrie, Bitwise, WisdomeTree, Franklin Templeton, BlackRock, VanEck and Invesco.
It is to be said that the approval of spot bitcoin ETF is expected to pour more institutional capital into the crypto field.
The SEC is likely to notify the 14 asset managers vying for the spot bitcoin ETF by Tuesday or Wednesday of next week, before the January 10 deadline. Fund management firms that have reached the end of their year-end deadline may be able to launch their product by January 10.
These companies include Ark Invest, 21Shares, Valkyrie, Bitwise, WisdomeTree, Franklin Templeton, BlackRock, VanEck and Invesco.
It is to be said that the approval of spot bitcoin ETF is expected to pour more institutional capital into the crypto field.
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BTC made 157% profit in 2024 so far What do you think for the new year? 👀
Anonymous Poll
64%
BTC cost 100k
36%
BTC returns to 20k after momentum pump
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In the realm of pre-market trading, both Coinbase and MicroStrategy experienced positive upswings today. This surge coincided with Bitcoin's ascent beyond the $45,000 threshold, fueled by the green light given to spot ETFs in the US.
Beginning with Coinbase, its shares, concluding 2023 at $173.92, demonstrated a commendable 6.4% surge, reaching $184.99. Over the past month, the exchange's stocks have surged by an impressive 36%, while the year-on-year increase stands at a remarkable 420%. However, it's worth noting that this figure remains 46% below the peak price observed in November 2021, which was $344.
Shifting focus to MicroStrategy, its shares saw a notable 9.3% increase, climbing from $690.3 at the year's end to $631.6. This upward trajectory highlights a 25% gain in the past month and an impressive 372% surge over the last year.
In summary, both Coinbase and MicroStrategy are navigating dynamic markets, showcasing noteworthy movements in response to Bitcoin's performance and regulatory developments
Beginning with Coinbase, its shares, concluding 2023 at $173.92, demonstrated a commendable 6.4% surge, reaching $184.99. Over the past month, the exchange's stocks have surged by an impressive 36%, while the year-on-year increase stands at a remarkable 420%. However, it's worth noting that this figure remains 46% below the peak price observed in November 2021, which was $344.
Shifting focus to MicroStrategy, its shares saw a notable 9.3% increase, climbing from $690.3 at the year's end to $631.6. This upward trajectory highlights a 25% gain in the past month and an impressive 372% surge over the last year.
In summary, both Coinbase and MicroStrategy are navigating dynamic markets, showcasing noteworthy movements in response to Bitcoin's performance and regulatory developments
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I've never seen so many news updates on one topic!
Yes, I'm talking about that ETF. News about this event is popping up almost every minute. Just as I started writing this post, I got a notification:
🔥 Insider: Axios: Spot Bitcoin ETF trading could start as early as Thursday (January 11)!
Meanwhile, Bitcoin is already at $47k, where reaching 50k is just a matter of a moment. Yes, everything points to a 90% chance that we'll see the first Bitcoin ETFs this week. Of course, it's a significant event and a new chapter for the market.
What about the big picture?
In 2024, forecasts predict an influx of $50 to $100 billion into spot Bitcoin ETFs. These are massive amounts, even for Bitcoin, and nothing will hinder reaching a new ATH in the long term.
Looking at the short term?
I believe we'll see a Bitcoin price increase until the ETFs are approved (front-run). The actual approval may bring a final impulse, pushing the price to its maximum potential, where smart money will unload.
“buy the rumor, sell the fact”
This by no means implies putting a stop to Bitcoin's growth. The question is how long the offloading will last and how many "extra" passengers are currently in the market.
I think we'll see the following scenario:
A final strong impulse and a push upwards, followed by a sharp decline that gradually transitions into sideways trading. Meanwhile, Ether and the entire alt-market will receive a lot of new liquidity, discussions about an ETH ETF will begin, and the liquidity overflow will start.
On a global scale, everything is great; locally, expect some minor manipulations and high volatility.
Yes, I'm talking about that ETF. News about this event is popping up almost every minute. Just as I started writing this post, I got a notification:
🔥 Insider: Axios: Spot Bitcoin ETF trading could start as early as Thursday (January 11)!
Meanwhile, Bitcoin is already at $47k, where reaching 50k is just a matter of a moment. Yes, everything points to a 90% chance that we'll see the first Bitcoin ETFs this week. Of course, it's a significant event and a new chapter for the market.
What about the big picture?
In 2024, forecasts predict an influx of $50 to $100 billion into spot Bitcoin ETFs. These are massive amounts, even for Bitcoin, and nothing will hinder reaching a new ATH in the long term.
Looking at the short term?
I believe we'll see a Bitcoin price increase until the ETFs are approved (front-run). The actual approval may bring a final impulse, pushing the price to its maximum potential, where smart money will unload.
“buy the rumor, sell the fact”
This by no means implies putting a stop to Bitcoin's growth. The question is how long the offloading will last and how many "extra" passengers are currently in the market.
I think we'll see the following scenario:
A final strong impulse and a push upwards, followed by a sharp decline that gradually transitions into sideways trading. Meanwhile, Ether and the entire alt-market will receive a lot of new liquidity, discussions about an ETH ETF will begin, and the liquidity overflow will start.
On a global scale, everything is great; locally, expect some minor manipulations and high volatility.
🍌3