Bitcoinhyper got everyone excited by revealing about the approval of Bitcoin’s ETF. However, the market did not react as expected and fell significantly from $49,000. In this article, we’ll look at why this happened and discuss what could happen next.
What’s interesting is that there was a lot of excitement on the first day of Bitcoin ETF trading, but the price plummeted a few days later. This not-so-good performance makes people wonder if there is actually a strong demand for this type of product in the market.
Bitcoin performed well, rising to $49,000, but fell short of the important $50,000 target. Instead he saw a sharp drop of around 16%, which surprised many traders. Despite the ETF’s approval, market sentiment changed quickly. Retailers who thought prices would rise were caught off guard by the adjustment. Interestingly, liquidations during this downturn were not as large as expected.
About 18.8 million short positions were liquidated, but the amount was not as large as expected. This news made traders overly optimistic and overlooked a potential correction. Bitcoin is currently hovering around $42,300, hovering near weekly support and the mid-level of the horizontal range. This hints at a possible regional high and raises questions about a larger correction.
It is important to note that the market is moving away from interest in spot Bitcoin ETFs. Now people are talking more about the possibility of a product similar to Ethereum (ETH). These changes are affecting the price of Bitcoin. Since the price of Bitcoin rose in the days before the ETF approval, there is a possibility that it will fall below the support level of $40,000.