📉 Crypto Trading Firm Anticipates Bitcoin to Dip to $36,000 - Here's Why!
In a recent market update, QCP Capital, a notable trading firm, has shared insights into Bitcoin's potential reaction if the Securities and Exchange Commission (SEC) approves Spot Bitcoin ETFs in January. Here's a breakdown of their predictions:
Bitcoin's Potential Retracement:
QCP Capital suggests that Bitcoin might experience a retracement, potentially dipping to around $36,000, before resuming an upward trend. Their analysis indicates a topside resistance for Bitcoin between the $45,000 and $48,500 range. These projections hinge on the assumption that Spot Bitcoin ETFs receive SEC approval.
'Sell the News' Scenario:
The trading firm speculates that the actual demand for these investment funds might initially fall short of market expectations, creating a 'sell the news' scenario that could lead to a temporary decline in Bitcoin's price.
Short-Term Downtrend, Long-Term Confidence:
While they foresee a short-term dip, QCP Capital remains confident that Bitcoin's recent resurgence will persist. They anticipate a recovery after a few weeks, particularly as traders position themselves for a robust rally ahead of the Bitcoin Halving, seen as a catalyst for the next bull run.
Ethereum Takes Center Stage:
As attention shifts from Bitcoin, QCP Capital anticipates Ethereum to be the next major player, especially if Spot Bitcoin ETFs gain approval. They project that investors might redirect capital from BTC to ETH in anticipation of a potential rally in Ethereum's price.
Ethereum Spot ETF Anticipation:
Despite recognizing a potential shift to Ethereum, QCP Capital believes that the approval of an Ethereum Spot ETF is still "many months away." Nonetheless, they expect Ethereum's price to witness notable rallies based on speculative activities, similar to Bitcoin's previous surges during Spot BTC approval rumors.
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