According to CryptoPotato, Bitcoin's price has continued to rise in November, following a significant increase from $26,750 on October 12 to $34,667 on October 31. The price has experienced more volatility this month, with fluctuations between $36,500 and $37,400 as the market awaits the SEC's decision on Grayscale Investments' Bitcoin ETF application. Some analysts believe that the current bull market is unsustainable and driven primarily by the anticipation of a Bitcoin ETF approval.
Off The Chain Capital's president, Brian Dixon, recently stated that he does not expect a significant rally when the SEC approves one or more Bitcoin ETF products. He believes that there will be a short-term increase followed by a drawdown, with a larger increase occurring when the ETFs become operational. Dixon also noted that there is plenty of demand from traditional markets, with many institutional investors waiting for a regulated on-ramp.
However, some analysts, including Peter Schiff, founder and chief strategist of Euro Pacific Capital, and Mads Eberhardt of Steno Research, caution that the Bitcoin ETF story may be overbought. Schiff warned that a sell-off could materialize sooner, while Eberhardt anticipates that the introduction of ETFs will exert more selling pressure than buying in the short term. J.P. Morgan analysts led by Nikolaos Panigirtzoglou also believe that the current BTC rally is overdone.
Technical analysis supports the bearish outlook, with Bitcoin's price RSI (Relative Strength Indicator) showing a bearish divergence from its green candles in November. This divergence has widened as markets approach December, indicating that bears may be gaining confidence while bulls lose steam as they await the SEC's decision on ETF approval.
