According to Bloomberg, Bitcoin experienced a slight recovery on Wednesday, rising as much as 3.4% before paring some of the gains to trade at $40,180 as of 6:55 a.m. in New York. The cryptocurrency is down almost 20% from an intraday peak of $49,021 when the ETFs went live, as excitement about the products gives way to uncertainty over the eventual scale of demand for them. The US spot Bitcoin ETF category as a whole has attracted about $1 billion in investments.
Orbit Markets co-founder, Mauron, believes that the latest Bitcoin correction reflects extended positioning and technical factors around the Grayscale ETF, which should all fade over the medium term. Technical analysis using chart patterns signals a possible base for Bitcoin at $36,000 to $38,000 and even a renewed climb if those levels hold.
Bitcoin jumped 157% last year in anticipation of the ETFs as well as looser monetary policy before sinking this month. The funds, plus the prospect of interest-rate cuts, remain props for the token. The latest Bitcoin selloff is the fourth time over the past year or so when the token shed around 20%. An Ichimoku Cloud study indicates a possible cushion for Bitcoin around $37,000. Near-term stabilization would be a natural development at this stage, according to Mauron.
