Matrixport expects Bitcoin to plummet 7% “over the next two weeks”
[ad_1]
Analysts at Matrixport said one of their trading signals has turned bearish on Bitcoin for the first time since August 2023.
in a blog post On January 8, the Singapore-based cryptocurrency management firm warned traders to expect Bitcoin (BTC) prices to fall over the “next two weeks” given that breakout attempts may fail.
Matrixport analysts warn that as the crypto market reaches consensus that the U.S. Securities and Exchange Commission (SEC) will approve a spot Bitcoin exchange-traded fund (ETF) before January 10, savvy money may take advantage of this approval. Profit settled.
Although leverage has been “washed out of the market” recently and downside is expected to be limited, the $36,000 to $38,000 range may be retested. Bitcoin’s funding rate on cryptocurrency exchanges plummeted from 66.1% to 7.4% in January, suggesting the largest cryptocurrency by market capitalization appears to be “technically vulnerable” amid a sharp increase in funding in early 2024, analysts say unsustainable”.
The warning comes just days after Matrixport said in a blog report that there is “possibly even a slim chance” that U.S. Securities and Exchange Commission (SEC) Chairman Gary Gensler will vote to approve a Bitcoin spot ETF. .
“ETFs will definitely allow cryptocurrencies as a whole to take off, and according to Gensler’s comments in December 2023, he still believes that the industry needs stricter compliance. From a political perspective, there is no reason to approve a Bitcoin spot ETF, making Bitcoin Legitimized as an alternative store of value.”
matrix port
Following the announcement, Bitcoin quickly plummeted 10% to $40,800, according to CoinGecko. According to crypto.news, prominent figures in the cryptocurrency world such as Will Clemente and Lark Davis have accused Matrixport of initiating the sell-off, which highlights the sensitivity of the cryptocurrency market to rumors and news.
However, Matrixport co-founder Jihan Wu later clarified that the company did not influence the analyst report, suggesting that the widespread reaction to the report was unexpected.
