Analysts Predict Continued Declines Post Bitcoin Spot ETF Approval, Yet Anticipate Yearly All-Time High

SEC Approval Sparks Bitcoin Sell-Off, Analysts Stay Optimistic

Following the approval of multiple spot Bitcoin ETF applications by the U.S. Securities and Exchange Commission on the 11th, Bitcoin experienced a significant sell-off, with prices falling below the $43,000 mark on Friday, wiping out the gains made during the week. Despite this setback, chart analysts remain optimistic about the future of the cryptocurrency and anticipate the potential for reaching historic highs.

New ETFs Propel Bitcoin, Analysts Eye Historic Highs Despite Short-Term Pullback

The newly launched ETFs are regarded by analysts as positive long-term catalysts for Bitcoin. These ETFs, being regulated and familiar investment tools, are expected to attract new funds into Bitcoin, increasing demand while maintaining a constant supply as mandated by the BTC code. Many investors and analysts express confidence that Bitcoin not only has the potential to recover but could surpass its previous all-time high of $69,000. Nevertheless, analysts caution that a further pullback may precede this upward trajectory. Ari Wald, a senior analyst at Oppenheimer, emphasizes the significance of Thursday's rejection at $48,000, marking the high point in March 2022. He suggests a potential scenario of "buying the news" with the launch of the Bitcoin ETFs.

Bitcoin's Rollercoaster: 5% Friday Dip Erases Weekly Gains, Key Support Levels Identified

Despite recent sell-offs, investors and miners have accumulated substantial unrealized gains, with Bitcoin surging over 60% in the past three months due to the ETF trend. Analysts indicate that on Friday, Bitcoin experienced a 5% decline, reaching $43,858.23, with support levels identified at $43,000 and $40,000.

RSI Indicator Signals Potential Bitcoin Pullback, Analysts Emphasize Overall Uptrend

Ari Wald points to the daily Relative Strength Index (RSI) as an indicator of a potential pullback, where values above 70 signal overbought conditions, and values above 30 indicate oversold conditions. Despite this, both Wald and Julius de Kempenaer, a senior technical analyst at StockCharts, affirm that Bitcoin's overall upward trend remains intact, foreseeing a potential push toward new record highs.

Amidst Potential Pullback, Analysts Bullish on Bitcoin's Future, Predicting New Highs

Julius de Kempenaer identifies $45,000 as a support level, emphasizing that once resistance around $48,000 dissipates, it could pave the way for a rally towards the all-time high at $69,000. Rob Ginsberg of Wolfe Research echoes this sentiment, anticipating a rise towards the $48,000-$50,000 resistance zone, with the potential to break out and target the November 2021 high of $69,000. In conclusion, despite short-term fluctuations, analysts maintain a positive outlook on Bitcoin's developmental trajectory and envision the possibility of reaching new highs in the coming months.

Conclusion

SEC-approved Bitcoin ETFs led to a sell-off, erasing gains. Analysts foresee highs but anticipate short-term pullback. Despite fluctuations, confidence in Bitcoin's upward trend prevails.