Bitcoin Price Prediction As BTC Defies Bearish Calls Bolstered By Spot ETF Optimism

Bitcoin Price Prediction: Bitcoin is on the cusp of a breakout to $42,000 but first resistance at $38,000 must come out the way. The hype around the possible approval of Bitcoin spot exchange-traded funds (ETFs) in the US is back with BlackRock and Grayscale reportedly meeting with the Securities and Exchange Commission (SEC).

As earlier reported, Grayscale submitted an update of its proposal that seeks to convert the Bitcoin Trust (GBTC) to a spot BTC ETF. Participants in the market view this update as a step closer to the approval expected in the coming weeks.

Meanwhile, a look into the daily time frame chart shows Bitcoin consolidating between $37,000 and $38,000 as the formation of an expanding channel pattern carries on. Here’s how this pattern could influence the near future trend of Bitcoin.

Also Read: Fed Minutes: How Bitcoin Price Reacted To Interest Rate?

Bitcoin Price Prediction: Bearish Pattern Hints Extended Correction

• The BTC price sustainability above the recently breached channel should bolster further rally.
• A breakdown below the new support trendline could trigger a fresh correction in the BTC
• The intraday trading volume in Bitcoin is $16.3 Billion, indicating a 46% gain.

Source-Tradingview

The ongoing recovery in Bitcoin price started to show a waning bullish momentum as the buyers struggled to surpass the $38,000 barrier. The overhead supply has led to a sideways action, projecting no initiation from buyers or sellers. 

However, this consolidation respects two diverging trendlines, indicating the formation of an expanding channel pattern. With an intraday gain of 2.4%, the coin price rebounded from the pattern’s lower trendline to a current trading value of $36,600. 

In theory, this chart pattern is a sign of increasing uncertainty as prices make larger swings. Under the influence of rising selling pressure, the BTC price would likely break below the lower timeline, which would pave the way for extended correction. 

The post-breakdown rally would likely tumble the BTC price 7% down to hit $33,400

8,000 Bitcoin Withdrawn from Binance Exchange

In a recent post on the X platform, the crypto analyst James V. Straten highlighted that the Binance exchange has seen a significant outflow of about 8,000 Bitcoins, valued at around $288 million, following CEO Changpeng Zhao’s admission of guilt to money laundering charges. In just 12 hours, the exchange’s Bitcoin balance dropped from 665,000 to 657,000, which is Almost 100k coins left since June at around $750. This development reflects the shaken trust in the exchange’s ability to securely handle large cryptocurrency volumes

• Exponential Moving Average: The 20-day EMA slope continues to offer dynamic support to asset buyers. 
• Relative Strength Index: the daily RSI slope drops below 60% to accentuate the weakening of the bullish momentum.