{"id":34960,"date":"2024-01-10T15:53:26","date_gmt":"2024-01-10T19:53:26","guid":{"rendered":"http:\/\/cryptocornercafe.com\/cafe\/?p=34960"},"modified":"2024-01-10T15:53:26","modified_gmt":"2024-01-10T19:53:26","slug":"bitcoin-etf-drama-reveals-post-approval-price-trend-experts","status":"publish","type":"post","link":"http:\/\/cryptocornercafe.com\/cafe\/2024\/01\/10\/bitcoin-etf-drama-reveals-post-approval-price-trend-experts\/","title":{"rendered":"Bitcoin ETF Drama Reveals Post-Approval Price Trend: Experts"},"content":{"rendered":"

The Bitcoin market was swept into a frenzy following an alleged hack of the US Securities and Exchange Commission\u2019s (SEC) X account, falsely claiming<\/a> the approval of 11 spot ETFs. This misinformation led to a rollercoaster in Bitcoin\u2019s price, which initially soared from $46,800 to $48,000, only to crash to $45,000 within a span of 20 minutes.<\/p>\n

This incident has become a pivotal moment for market analysts, providing insights into how the market might react to today\u2019s potential Bitcoin spot ETF approvals in the short term. So here\u2019s what experts from K33 Research, QCP Capital, and Daan Crypto Trades have to say.<\/p>\n

#1 K33 Research: Approval Will Be \u2018Sell-The-News\u201d Event<\/h2>\n

Vetle Lunde, a senior analyst at K33 Research, provided <\/a>an in-depth analysis of the market\u2019s reaction to the erroneous announcement. He observed that the market\u2019s immediate response was indicative of a tendency towards a \u2018sell-the-news\u2019 reaction. The initial surge in Bitcoin\u2019s price was quickly met with a flood of long positions, causing a significant price fluctuation.<\/p>\n

\u201cThe market showed its hands yesterday; the ETF approval rehearsal favors a sell-the-news<\/a> reaction. Immediately after the announcement, longs quickly crowded the market, enforcing a whipsaw in the following minutes,\u201d Lunde stated.<\/p>\n

Lunde also pointed out that until the SEC\u2019s clarification, the market largely accepted the announcement at face value, triggering an organic reaction. He outlined the sequence of events, noting a 2.4% increase in Bitcoin\u2019s price within four minutes post-announcement, followed by a 1.4% decrease in 14 minutes until Bloomberg debunked the approval news.<\/p>\n

The market eventually stabilized when Gensler<\/a> confirmed the hack, highlighting the market\u2019s sensitivity to regulatory news and rumors.<\/p>\n

#2 QCP Capital: Warning Sign For Bitcoin Traders<\/h2>\n

QCP Capital, in their \u201cQCP Market Update \u2013 10 Jan 24,\u201d reflected<\/a> on the bizarre nature of the event with a mix of humor and analysis. \u201cWe are on the cusp of a BTC Spot ETF approval, and what transpired in the last 24 hours is something you can\u2019t make up,\u201d their update began.<\/p>\n

They pointed out the lukewarm initial reaction to the \u2018approval,\u2019 suggesting that the market might have already priced in the possibility of an actual ETF approval.<\/p>\n

\u201cThe initial reaction to the \u2018approval\u2019 was muted with BTC being unable to trade out of the resistance area. We take this as a warning sign that an approval is mostly priced in and there may not be a huge rally post the approval,\u201d QCP warned.<\/p>\n

QCP Capital also focused on the implications of this event for future market trends. \u201cThe restrained response to the faux approval signals a warning \u2013 the actual approval of a Bitcoin ETF might not trigger the expected rally,\u201d they observed, also pointing to the current market dynamics, such as the elevated options volatility and spot-futures basis spread. Notably, the firm sees Bitcoin\u2019s next support at $40,000 to $42,000, and resistance around 48.500.<\/p>\n

Daan Crypto Trades: ETH\/BTC Could See A Spike<\/h2>\n

Daan Crypto Trades provided a concise but insightful analysis<\/a>. \u201cThe false ETF approval news was a litmus test for the market\u2019s post-approval direction,\u201d he commented. The analysis highlights the pattern of Bitcoin\u2019s price spiking and then fully retracing following the fake announcement.<\/p>\n

\u201cThis pattern could well repeat upon actual ETF approval, but with more pronounced selling pressure,\u201d he suggested. Daan Crypto Trades also touched on the broader market implications, especially for the ETH\/BTC ratio<\/a>, which started rallying immediately after the fake announcement.<\/p>\n

He further remarked:<\/p>\n

ETH\/BTC started rallying straight away which is also what we\u2019ve been looking for. I think today we might get one more small spike down on ETH\/BTC as BTC spikes up but after that I don\u2019t see much holding back the ETH\/BTC ratio anymore. Especially if BTC cools off post ETF.<\/p>\n

At press time, BTC traded at $45,346.<\/p>","protected":false},"excerpt":{"rendered":"

<\/p>\n

The Bitcoin market was swept into a frenzy following an alleged hack of the US Securities and Exchange Commission\u2019s (SEC) X account, falsely claiming<\/a> the approval of 11 spot ETFs. This misinformation led to a rollercoaster in Bitcoin\u2019s price, which initially soared from $46,800 to $48,000, only to crash to $45,000 within a span of 20 minutes.<\/p>\n

This incident has become a pivotal moment for market analysts, providing insights into how the market might react to today\u2019s potential Bitcoin spot ETF approvals in the short term. So here\u2019s what experts from K33 Research, QCP Capital, and Daan Crypto Trades have to say.<\/p>\n

#1 K33 Research: Approval Will Be \u2018Sell-The-News\u201d Event<\/h2>\n

Vetle Lunde, a senior analyst at K33 Research, provided <\/a>an in-depth analysis of the market\u2019s reaction to the erroneous announcement. He observed that the market\u2019s immediate response was indicative of a tendency towards a \u2018sell-the-news\u2019 reaction. The initial surge in Bitcoin\u2019s price was quickly met with a flood of long positions, causing a significant price fluctuation.<\/p>\n

\u201cThe market showed its hands yesterday; the ETF approval rehearsal favors a sell-the-news<\/a> reaction. Immediately after the announcement, longs quickly crowded the market, enforcing a whipsaw in the following minutes,\u201d Lunde stated.<\/p>\n

Lunde also pointed out that until the SEC\u2019s clarification, the market largely accepted the announcement at face value, triggering an organic reaction. He outlined the sequence of events, noting a 2.4% increase in Bitcoin\u2019s price within four minutes post-announcement, followed by a 1.4% decrease in 14 minutes until Bloomberg debunked the approval news.<\/p>\n

The market eventually stabilized when Gensler<\/a> confirmed the hack, highlighting the market\u2019s sensitivity to regulatory news and rumors.<\/p>\n

#2 QCP Capital: Warning Sign For Bitcoin Traders<\/h2>\n

QCP Capital, in their \u201cQCP Market Update \u2013 10 Jan 24,\u201d reflected<\/a> on the bizarre nature of the event with a mix of humor and analysis. \u201cWe are on the cusp of a BTC Spot ETF approval, and what transpired in the last 24 hours is something you can\u2019t make up,\u201d their update began.<\/p>\n

They pointed out the lukewarm initial reaction to the \u2018approval,\u2019 suggesting that the market might have already priced in the possibility of an actual ETF approval.<\/p>\n

\u201cThe initial reaction to the \u2018approval\u2019 was muted with BTC being unable to trade out of the resistance area. We take this as a warning sign that an approval is mostly priced in and there may not be a huge rally post the approval,\u201d QCP warned.<\/p>\n

QCP Capital also focused on the implications of this event for future market trends. \u201cThe restrained response to the faux approval signals a warning \u2013 the actual approval of a Bitcoin ETF might not trigger the expected rally,\u201d they observed, also pointing to the current market dynamics, such as the elevated options volatility and spot-futures basis spread. Notably, the firm sees Bitcoin\u2019s next support at $40,000 to $42,000, and resistance around 48.500.<\/p>\n

Daan Crypto Trades: ETH\/BTC Could See A Spike<\/h2>\n

Daan Crypto Trades provided a concise but insightful analysis<\/a>. \u201cThe false ETF approval news was a litmus test for the market\u2019s post-approval direction,\u201d he commented. The analysis highlights the pattern of Bitcoin\u2019s price spiking and then fully retracing following the fake announcement.<\/p>\n

\u201cThis pattern could well repeat upon actual ETF approval, but with more pronounced selling pressure,\u201d he suggested. Daan Crypto Trades also touched on the broader market implications, especially for the ETH\/BTC ratio<\/a>, which started rallying immediately after the fake announcement.<\/p>\n

He further remarked:<\/p>\n

ETH\/BTC started rallying straight away which is also what we\u2019ve been looking for. I think today we might get one more small spike down on ETH\/BTC as BTC spikes up but after that I don\u2019t see much holding back the ETH\/BTC ratio anymore. Especially if BTC cools off post ETF.<\/p>\n

At press time, BTC traded at $45,346.<\/p>\n

<\/p>\n","protected":false},"author":0,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"colormag_page_layout":"default_layout","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[82],"tags":[],"class_list":["post-34960","post","type-post","status-publish","format-standard","hentry","category-blockchain"],"jetpack_featured_media_url":"","jetpack_sharing_enabled":true,"_links":{"self":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/34960","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/comments?post=34960"}],"version-history":[{"count":1,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/34960\/revisions"}],"predecessor-version":[{"id":34967,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/posts\/34960\/revisions\/34967"}],"wp:attachment":[{"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/media?parent=34960"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/categories?post=34960"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/cryptocornercafe.com\/cafe\/wp-json\/wp\/v2\/tags?post=34960"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}