After briefly testing the $49,000 mark, the value of the first-generation cryptocurrency has fallen since the introduction of the spot Bitcoin exchange-traded fund (ETF).
Now, focus is on the short-term price trend of Bitcoin (BTC), which is in danger of losing the critical $40,000 support level. In fact, there was a lot of conjecture that Bitcoin would fall further lower once price fell below $41,000 on January 20.
Crypto trading guru FieryTrading examined the prognosis for Bitcoin after the excitement around ETFs in a TradingView post on January 20.
FieryTrading's investigation revealed a relationship between bear market lows and the price of Bitcoin during Halving periods.
Using historical data analysis, he identified a speculative pattern that bears similarities to the second and third halving events and has the potential to dramatically increase the value of Bitcoin.
“So my assumption would be that the price on the 4th halving, the next one, would be 100% from the $ 15,500 bottom, so around $31,000. With BTC reversing after the ETF launch, a move towards $31,000 is not even that far-fetched, since it functioned as a very important resistance of the majority of 2023 and therefore functions as a magnet,” he said.
Bitcoin catalyst
Since the ETF's performance in terms of Bitcoin price action has fallen short of expectations, focus has switched to other catalysts, most notably the impending April halving event. In this instance, predictions are that the halving will enhance the ETF.
For example, according to a prior Finbold post, Anthony Scaramucci, the founder of SkyBridge Capital, predicted that Bitcoin may reach $170,000 by 2025 and attributed the rise to the ETF and halving event.
Notwithstanding Bitcoin's response to the ETF, the product has performed quite well overall, drawing a sizable trading volume in a matter of days.
