Bitcoin crashed 5.59% with a 24% rise in the trading volume as the entire market puts on the bearish cap. The sharp reversal undermines the two-day bullish sprint from $42,200 to almost $46,000 in a single selling day.
The black swan move for short-term traders comes with Matrixport, a financial service company, lowering its short-sighted expectations for Bitcoin and its Spot ETF. Last week, the financial services firm expected the Bitcoin price to reach the milestone of $50,000 by the first weekend of 2024.
Read our Bitcoin Price Prediction to know more about how high the Bitcoin price will go this year.
However, in its recent note, the company expects the SEC Chair Gensler to reject all the Bitcoin Spot ETFs AGAIN!
“SEC Chair Gensler is not embracing crypto in the U.S., and it might even be a very long shot to expect that he would vote to approve bitcoin spot ETFs.”
However, despite the chances of rejection, chances of a bullish weekend are high. As the company ends the note, “Even if the SEC would deny the ETF, we still expect Bitcoin prices to be higher by the end of 2024 than when they started the year ($42,000), as US election years and Bitcoin mining years tend to be positive.”
Bitcoin Technicals Signal A Yellow Alert!
Despite the huge bearish engulfing candle catching the eye in the Bitcoin chart at first glance, the bulls are making their presence known at lower levels—the strong support at the 20D EMA and the ascending support zone cushions against the ongoing selling spree.
Currently, the BTC price trades at $42,394 with a highly volatile brawl of power at play. Coming to the on-chain technicals, $540,000,000 was liquidated from the crypto market in the past 4 hours.
Returning to the technicals in the daily chart, the MACD indicator shows a failure of a bullish crossover. Further, the 20D EMA actively stands against the surprised bear attack powered by the Matrixport note.
Will BTC Price Crash Under $40K?
Despite the ongoing fall, the dynamic support of the 20D EMA and 50D EMA will prove crucial reversal points for Bitcoin. Further, the ascending support zone is yet another technical element that may provide a bounce-back opportunity for Bitcoin.
On a fundamental note, Matrixport remains optimistic about the BTC price trend in 2024. And, it is not for Matrixport to decide, and the high anticipations around BTC Spot ETF may lead to fruitful ends.
Further, Bitcoin’s halving in April and the possibility of rate cuts are other fundamental drivers that may drive BTC prices higher in 2024.
In case the dynamic supports help Bitcoin regain momentum, the BTC price can reach the $50,000 milestone in January 2024. Conversely, a crash under $40,000 is possible if the daily candle closes below the $42,000 mark.