$BTC $ETH $BNB #SolanaTrade #

BTC 📢📢Bitcoin Alert: Potential Dip to $32,000 Post Spot ETF Approval

⛔️Warning from Data Provider - 'Sell the News' Scenario Looms

🚫As Bitcoin enthusiasts anticipate the approval of a spot ETF, CryptoQuant issues a cautionary note, predicting a possible downward correction to $32,000 post- approval.

🚫Understanding the 'Sell the News' Dynamics:

🚫In a typical 'sell the news' event, prices, leverage, and sentiment surge in anticipation of a positive development. However, smart traders exploit the crowded long trade, leading to a subsequent drop. This scenario is a common occurrence in capital markets.

🚫Factors Contributing to the Warning:CryptoQuant points to high unrealized profit margins of 30% among short-term Bitcoin holders, historically preceding price corrections. Additionally, short-term holders are still spending Bitcoin at a profit, a trend that usually shifts after short-term losses are realized.

🚫Portfolio Management Advisory from Capriole Investments:

Capriole Investments advises "conservative portfolio management" ahead of the potential ETF approval. With Bitcoin's recent surge of over 60%, the firm highlights increased risk for long Bitcoin positions, emphasizing the need to anticipate larger volatility events.

Historical Context:

Referencing past instances, Bitcoin has witnessed 'sell the news' events in 2017 and 2021. In 2017, after the launch of BTC futuresby CME, Bitcoin peaked at $20,000 but declined in the following months. Similarly, in 2021, after Coinbase's public debut, Bitcoin reached $65,000 before losing value.

Current Bitcoin Status:

As of now, Bitcoin is trading at $42,450, starting the year at $16,000. The daily trading volume remains stable at $80 billion, according to CoinMarketCap.

Stay Informed, Stay Cautious: Follow The Defidraft for Real-time Updates!