YEREVAN (CoinChatper.com) — QCP Capital, a Singapore-based digital assets trading firm, anticipates that Bitcoin price will face resistance between $45,000 and $48,500 before attempting a strong bullish move.
It is likely that the actual demand for the bitcoin spot ETF at the start will fall short of market expectations. We expect topside resistance for bitcoin in the $45,000-$48,000 region and a possible retracement to $36,000 levels before the uptrend resumes.
QCP Capital Predicts a BTC Drop Ahead
Additionally, QCP Capital predicted subdued initial demand for the upcoming January launch of a Bitcoin spot exchange-traded fund (ETF). This scenario might lead to a ‘sell the news’ event and short-term volatility in bitcoin’s price. As a result, the focus is expected to shift towards Ether (ETH).
Did you know? The battle for a possible Bitcoin-based spot ETF has reached massive proportions since financial giant BlackRock entered the game. The company claims to have ongoing negotiations with the US Securities and Exchange Commission (SEC), and the markets expect the agency to budge in early January. Notably, the possible win will mark the first-ever spot Bitcoin ETF in the US market.
However, QCP Capital suggests that the actual demand for the Bitcoin spot ETF might not meet market expectations initially. They foresee a possible drop in Bitcoin’s price to around $36,000 before an uptrend resumes. As of Dec 21, Bitcoin traded above $43,700, showing a 2% increase during Asian business hours.
As mentioned, Ether is viewed as a potential secondary investment option, with a market shift anticipated from Bitcoin. Speculative interest in an upcoming Ether spot ETF could push its prices higher, even before the ETF’s launch.
BlackRock Keeps Pushing
BlackRock, Nasdaq, and the SEC recently held their second meeting in a month. The discussion focused on rule changes for listing the Bitcoin ETF. BlackRock has modified its proposal to include cash redemptions, which aligns with the SEC’s preferences. Grayscale, another substantial contender for launching a spot Bitcoin ETF, also recently had its second meeting with the SEC.
In the trading scene, investor sentiment is crucial, as it can stir the market in any direction. While there is much debate about the repercussions of a spot Bitcoin ETF approval, retail investors are ready to pump the price further on sheer expectations.