CryptoQuant reveals a huge downside target for Bitcoin (BTC) following this month’s “Sell the News” event.
On-chain analytics platform CryptoQuant believes a deep corrective move is on the horizon for Bitcoin as the market eagerly awaits the potential approval of spot-based BTC exchange-traded funds (ETFs).
In a research report, CryptoQuant says the approval of Bitcoin ETFs sometime this month could be a sell-out as BTC investors are now sitting on significant profits.
According to the on-chain data provider, traders could take advantage of the event to lock in their profits, which could lead to a Bitcoin correction.
“Market analysts believe there is a 90% chance of a Bitcoin spot ETF approval in the US between January 8th and 10th, 2024. We argue that the ETF approval could be a “sell-the-news” event as Bitcoin market participants sit away with undetected profits.”
Should Bitcoin experience a correction following the approval of BTC ETFs by the US Securities and Exchange Commission (SEC), CryptoQuant predicts that Bitcoin could fall by almost 30% from current prices based on one metric.
“In this scenario, Bitcoin price could fall to as low as $32,000, the price realized by short-term holders (STH).”
STH realized price is an on-chain metric that tracks the average acquisition price of all Bitcoins that have not moved in less than 155 days. A decline towards the realized STH price of around $32,000 would wipe out most of the gains of investors who have purchased BTC over the last five months or so.
At the time of writing, Bitcoin is trading at $44,990, up over 5% in the last 24 hours.
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