The failure of the bullish rally following the launch of the spot Bitcoin ETF appears to have circulated a bearish wave throughout the market. The price of Bitcoin is showing a slight upward trend, which unfortunately leads to a large decline. The current trend followed by Star tokens suggests that the bears are continuing to maintain greater dominance. As a result, bulls that were hovering above the $48,000, $47,000, $43,400, and $41,600 levels may now remain at $40,000 for an extended period of time.
The market was growing more confident about the approval and launch of the Spot Bitcoin ETF, and with this year’s high above $48,500, they expected the price to rise closer to $50,000. However, failing to do so may spread disappointment and fear among market participants who are just entering the cryptocurrency world. According to data from st tlyA significant decrease in the number of Bitcoin wallets has been observed recently.
The decline was observed in three main variants: wallets holding BTC in the range of 0-1, 1-1000, and above 1000. While declines in the latter two variants have been observed for a long time, wallets holding 0 to 1 BTC have recorded a decline of 0.94% since the ETF’s launch. The overall number of Bitcoin wallets is declining at the fastest rate since early October, just before the main cycle began. Traders are therefore showing a similar level of impatience, with less than 1 BTC being liquidated in the past four days alone.
This pattern is a sign of capitulation and could lead to a market price rally until smaller traders become optimistic about a rally again. While the negative impact of the launch of spot Bitcoin ETFs is seen as the main reason for the decline in wallet numbers, the upcoming Bitcoin halving could turn things upside down for the entire cryptocurrency space. History tells us that BTC price consolidated right before the halving, and the excess squeeze was released immediately after the event.
So, this continues the bullish narrative about the Bitcoin price rally, keeping the $50,000 target intact.