Despite the approval of spot Bitcoin ETFs on January 10, Bitcoin (BTC) prices continue to decline. YouTube analyst Crypto Banter says BTC technical charts indicate an impending decline in the market.
According to Crypto Banter, there should be more money flowing into BTC than flowing out. While there was a net inflow of $1.2 billion last week, there was also an outflow of $579 million from Grayscale, the world's largest BTC owner.
The analyst concludes that cryptocurrencies have been kept under lock and key for some time. However, with new ETF announcements, cryptocurrencies are starting to hit the market.
Grayscale began sending BTC to multiple addresses for BTC liquidation on January 12. GBTC began trading at a 3% discount as many sellers tried to exit their positions.
The analyst concludes that the result is a race between the amount of money flowing from GBTC and the amount of money flowing into spot Bitcoin ETFs, likely resulting in a market decline.
Comparatively, the analyst highlights some good news: Ethereum (ETH) open interest has increased, indicating that some BTC trading has moved there. Institutions are relaxing their positions. The big question now is whether Bitwise and other providers can bring in more BTC buyers.
Looking at Bitcoin technical charts on the weekly time frame, the analyst calls the shooting star pattern. This pattern refers to a small-bodied candlestick with a long wick at the top and little or no wick at the bottom. A shooting star pattern usually indicates a potential decline in the market.
However, the analyst compares this chart to the aftermath of the Coinbase IPO, where there was a local peak in BTC. The price fell after the IPO, but then went parabolic. However, historically there will be some pullback first.
