According to Cointelegraph: The possibility of Bitcoin dipping further before picking up is predicted by market analysts, who also suggest a remarkable short squeeze in the offing. Data from Cointelegraph Markets Pro and TradingView indicate a modest recovery after Bitcoin plunged to $39,440.
Consistent sell-side pressure - from sources like Grayscale Bitcoin Trust (GBTC), the largest Bitcoin institutional investment vehicle - as consumers transition into new spot Bitcoin exchange-traded funds (ETFs) is impacting Bitcoin. Having already lost up to 20% against January's highs, Bitcoin gave little encouragement to traders, with some forecasting further losses as liquidations increase.
Arthur Hayes, former CEO of crypto exchange BitMEX, stated on X (formerly Twitter) there’s “still more to go.” Keith Alan, co-founder of trading resource Material Indicators, echoed that sentiment, warning that Bitcoin bulls need to "build some momentum" around the current prices near $40,000, or a plunge to $38,000 could be inevitable.
Separately, a chart presenting the BTC/USDT bid liquidity for Binance, the world’s largest crypto exchange, demonstrated the interest of bidders just below Bitcoin’s current price level, with sellers absent until $44,000.
Despite the ongoing sales, Bitcoin whales, as noted by Material Indicators, have made steady purchases throughout the past month, reaching $800 million.
With reference to the increasing inflows to the other ETFs, notably BlackRock’s iShares Bitcoin Trust (IBIT) which gained $272 million on the day, Bloomberg Intelligence analyst, James Seyffart, suggests GBTC is not clear of Bitcoin sales yet.
Contrarily, popular crypto social media commentator MartyParty perceives a light at the end of the tunnel. He argues that ETF selling should start to relax, and the turbulence following their launch should make way for a more steady uptrend.
If all goes as envisioned by the crypto commentator MartyParty, a rally led by both retail and new institutional investors could soon provide fuel for a massive short squeeze, sparking a significant bounce in Bitcoin prices.
