BTC Continues to Fall Post ETF Approval. More Decline Expected?

• Bitcoin is currently trading at $42,630 with a daily volume of $20 billion.
• Despite being in a bullish range, BTC has struggled to maintain key levels at $44,00 and $46,736.

The global cryptocurrency market is currently gripped by uncertainty as Bitcoin (BTC) trades within a narrow range. A staggering 57% drop in global market trading volume over the last four days has contributed to the cautious feelings, leaving crypto enthusiasts on the edge, eagerly anticipating the next market trend.

The leading cryptocurrency, Bitcoin, is struggling to breach the crucial $44,000 level. The recent debut of the Spot Bitcoin ETF was initially anticipated to boost BTC prices to $50,000 but took an unexpected turn as bears took control, temporarily dragging Bitcoin below $41,700. This unexpected twist has left market sentiments in a state of neutrality.

The aftermath of the ETF approval saw Bitcoin surge to $48,625, only to face intensified selling pressure. Still, BTC has signed a significant pullback and is awaiting confirmation of a breakout that could trigger its future trajectory.

Further, according to Santiment, a prominent chain data provider, large Bitcoin wallet addresses have been observed actively moving older Bitcoins, resulting in a notable reduction in the average age of BTCs held in these wallets. Although there are subtle signs that the transfer of older coins may have come to a temporary halt, the impact could potentially interrupt the current bullish cycle in the cryptocurrency market.

However, Santiment suggests that strategic actions by crypto whales might spark a new rally, potentially testing levels around $45,000 or even reattaining the elusive $50,000 mark.

Reflecting on the Bitcoin Price Track

The start of 2023 witnessed the first-ever weekly death cross, causing a 16.5% rally from $41,702 to $48,625. Expectations were optimistic for further influence, yet the market took an unforeseen shift.

At the time of writing, Bitcoin traded at $42,630 with a daily trading volume of $20 billion. The failure of Bitcoin to maintain key levels of $46,736 and $48,700, despite trading within a bullish range, has raised concerns in the crypto market.

Bitcoin (BTC) Price Chart (Source: TradingView)

As the bears tighten their grip, a further negative movement could confirm a downward trend. The Bitcoin trade in the coming days seems crucial, with a drop below $42,400 or $41,900 potentially signaling a plunge below $41,500.

On the flip side, a reversal of the trend could see immediate resistance at $43,500, with further hurdles at $44,800 and the appealing possibility of reaching $46,750, potentially paving the way for a new all-time high in the year.

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