According to Cointelegraph: On December 28th, Bitcoin (BTC) demonstrated another day marked with losses, diluting hopes of those who expected the coin to break free from resistance after the holiday hiatus. The BTC price dropped $1,500 against the daily open, according to data from the Cointelegraph Markets Pro and TradingView.
Over a week-long range-corridor has seemingly trapped Bitcoin, keeping it from experiencing significant gains. Challenges stemming from profit-taking and excessively high funding rates have been abundant, leading to industry speculation about the next potential market shift.
Maartunn, a contributor to on-chain analytics platform CryptoQuant, noted increased bid liquidity around the $40,000 support level on Coinbase during an analysis of the current order book state. Alternatively, trading resource Material Indicators observed occasional buying interest from whales within the current rate.
Material Indicators highlighted, "We are also seeing some small blocks of bid liquidity move up above $42K, perhaps attempting to prevent a lower low. Watching to see if it holds.”
In the meanwhile, Filbfilb, co-founder of trading suite DecenTrader, released a cautionary note against sanguine BTC price predictions. The decision regarding the first United States Bitcoin spot price exchange-traded fund's (ETF) approval should not serve as an excuse for unsubstantiated assumptions, he urged.
"The pumping competition for who’s calling the highest number for Bitcoin when ETF comes along is a red flag," he stated, suggesting that if the initial capital inflow following ETF approval proves disappointing, a market correction could be on the horizon.
Many among the market participants, including Filbfilb, anticipate a "sell the news" reaction following an ETF go-ahead, which is due by January 10, 2024. Nonetheless, Filbfilb previously predicted a $46,000 BTC price point by the April block subsidy halving in 2024.
Despite the gloomy short-term prognosis, Filbfilb projected, "I’m still of the view that the overall outcome will be a strong 2024 and there would be a pump of some sort on approval, but it’s expected with like 95% certainty." regarding the ETF approval.
