Bitcoin Will Climb 30% After ETF Approval, Then Drop To 37K Afterward – Analyst
The potential of Bitcoin for a significant price shift is under scrutiny as Jon Najarian, a seasoned options trader, shares insights on the market. He specifically looked into the possible impact of a spot Bitcoin ETF.
He believes that the introduction of such an ETF could trigger a substantial surge in the top crypto, estimating a noteworthy 25% to 30% increase within a brief two-day period.
According to Najarian, who is also a CNBC contributor, investors seem to be preemptively positioning themselves to capitalize on the anticipated positive market reaction once the ETF is established.
Will Bitcoin Drop To $37K?
Examining the technical side, Najarian suggests a probable retracement scenario, indicating a return to the $37,000 level. He refers to historical chart patterns where this specific price point served as a significant barrier for upward movement.
In light of this historical resistance, Najarian speculates that, in the event of a pullback, $37,000 might function as a key support level, offering a potential cushion against downward market pressures.
Najarian’s insights reflect a combination of fundamental expectations regarding the impact of a BTC ETF and technical analysis considerations, providing a comprehensive perspective on potential market movements.
BTC market cap currently at $838 billion. Chart: TradingView.com
Traders and investors may find value in considering both aspects as they navigate the dynamic landscape of the cryptocurrency market.
According to the analyst, there’s a potential catalyst that could propel the alpha coin into a sudden parabolic surge. Speaking in a recent interview with trader Scott Melker, Najarian expressed his conviction that the US Securities and Exchange is likely to give the green light to spot ETFs.
Optimistic On ETF Approval
In Najarian’s perspective, such regulatory approval would act as a powerful trigger, catapulting the leading cryptocurrency to an impressive gain of up to 30% within a mere two-day span.
He said:
“I think we’re going to get a spot Bitcoin ETF. When we do, Bitcoin will move 25% to 30% in two days […] I think we’ll go back down and test $37,000 again.”
Supporters of bitcoin, like Samson Mow, CEO of Jan3, have predicted that in the “days to weeks” that follow the US government’s approval of a spot Bitcoin ETF, the price of bitcoin would rise as high as $1 million.
The cryptocurrency industry is excitedly anticipating the US government’s eventual approval of a spot ETF, but some analysts are cautioning that this could have unintended implications for cryptocurrency exchanges.
Forecasters Eric Balchunas of Bloomberg ETF and head of ETF Store Nate Geraci say that centralized bitcoin exchanges have a dismal future.
A Blood What?
On December 17, Geraci posted on X, a platform that was once Twitter, describing a potential spot Bitcoin ETF as a “bloodbath” for bitcoin exchanges if allowed.
Gonna be a bloodbath for crypto exchanges…
— Nate Geraci (@NateGeraci) December 18, 2023
For instance, JPMorgan Chase analysts stated in September that they anticipate the SEC will approve several spot bitcoin exchange-traded funds (ETFs) simultaneously. The investment bank did, however, issue a warning that spot bitcoin ETFs might severely pressure the price of bitcoin lower.
Thirteen spot bitcoin ETF applications are still pending with the SEC. Gary Gensler, the chairman of the securities regulator, announced last week that the organization is reexamining these files.
As the landscape of digital assets changes, the idea of a subsequent drop to the $37,000 level serves as a warning of how unpredictable the market is. Cryptocurrency fans and investors should look at these possible outcomes with a balanced view, taking into account both the short-term possibilities and the long-term strength of the cryptocurrency.
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