Bitcoin’s Rollercoaster Ride: The Dramatic Turn of Events Post-ETF Approval

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Analyst Jacob has opened up about Bitcoin and Ethereum prices. BlackRock recently acquired 2600 Bitcoin, valued at over $120 million, signaling increased institutional involvement. Despite this, Bitcoin is experiencing a slight retracement, prompting discussions about whether it’s a short-term dip or a more prolonged correction.

Examining the weekly chart, there’s confirmation that a key resistance level near $50,000 held, and the current pullback is observed in light of the recent Bitcoin ETF developments. Jacob mentions the importance of the $47,000 mark and suggests that the price may temporarily decline, possibly retesting a recent swing low around $44,000.

Looking at the hourly chart, there’s an observation of the market being in a reversal zone, indicating a potential retracement.Switching to Ethereum, Jacob notes the positive price action, reaching $2700 and potentially targeting the psychological level of $3000. Ethereum seems to be trading independently of Bitcoin’s movements, showcasing strength in its trend. Bitcoin is trading above the $42k levels at the time of writing.

Conclusion

On January 15th, Bitcoin tried to recover, surpassing $43,000 following the post-approval sell-off linked to the Bitcoin exchange-traded fund (ETF) on January 10th. This recovery comes after unsuccessful attempts last week to push Bitcoin beyond $50,000, facing resistance at $49,000. The hesitation of buyers suggests caution in the market, with reluctance to push prices significantly above $50,000.

Bitcoin’s price found support around $41,500 and is now in a consolidation phase. It has recovered slightly, going above $42,000 and $42,200. However, if it can’t break the $44,000 resistance, it might experience a new drop. The immediate support on the downside is approximately $42,800 or the 100-hourly Simple Moving Average.