Key Insights:
- BTC declined by 2.80% on Sunday, ending the session at $41,793.
- The Bitcoin Fear & Greed Index falls from Greed to Neutral, reflecting investor sentiment.
- On Monday, the markets will focus on BTC-spot ETF data and US regulatory activity.
Bitcoin Continues Correction After BTC-Spot ETF Approvals
BTC declined by 2.80% on Sunday. Reversing a 0.21% gain from Saturday, BTC ended the day at $41,793. BTC ended the week down 5.14% despite striking a Thursday high of $49,023.
The Bitcoin Fear & Greed Index reflected a marked shift in investor sentiment after the BTC-spot ETF approvals.
On Monday, January 15, the Fear & Greed Index fell from 60 to 52. Significantly, the Fear & Greed Index dropped from the Greed zone into the Neutral zone. The Fear & Greed Index peaked at 76 (Extreme Greed) on Thursday before the retreat. Extreme Greed signals a possible market correction ahead.
The current pullback is likely because investors locked in profits after the SEC approved the BTC-spot ETFs. Following the Grayscale victory against the SEC on appeal, BTC rallied from a September 2023 low of $24,963 to a January 2024 high of $49,023.
Bloomberg Intelligence ETF analyst James Seyffart recently suggested reasons for the recent losses. Seyffart’s top two reasons were,
-
“How many people do you think bought BTC or GBTC as a short/medium-term ETF approval play and are getting out?
-
Sales out of GBTC are flooding market, and there’s a settlement gap before *SOME* of that finds it way into these other ETFs or other exposures.”
Issuers Ramp Up Advertising Campaigns to Draw Investor Interest
Despite the recent losses, BTC-spot ETF issuers have seen reasonable inflows. Notably, issuers have ramped up advertising campaigns to draw new investors into the BTC-spot ETF market.
Notably, BlackRock and Fidelity led the pack with total inflows after two days. VanEck trailed by a large margin. Based on data for Thursday and Friday, the iShares Bitcoin Trust (IBIT) attracted inflows of $497.7 million. The Fidelity Wise Origin Bitcoin Trust (FBTC) attracted inflows of $422.3 million, while the VanEck Bitcoin Trust (HODL) recorded inflows of $10.6 million.
Following the BTC return to sub-$42,000, Monday inflows could influence buyer demand for BTC.
Bitcoin Price Forecast
Every new Bitcoin analysis as it publishes, today's technical signal and key levels, live price — on one page.
See all Bitcoin forecastsOn Monday, BTC-spot ETF-inflow/outflow data and SEC activity will be the focal points.
However, a fall through the 50-day EMA would give the bears a run at the $39,861 support level.
The 14-Daily RSI reading, 45.36, suggests a BTC fall to the $39,861 support level before entering oversold territory.
Ethereum Analysis
ETH sat well above the 50-day and 200-day EMAs, sending bullish price signals.
An ETH return to the $2,600 handle would support a move to the $2,650 resistance level.
ETH-spot ETF-related chatter needs consideration.
However, a break below the $2,457 support level would bring the $2,300 support level into play.
The 14-period Daily RSI at 58.89 indicates an ETH return to the $2,650 resistance level before entering overbought territory.
