Crypto market analysis of January 15, 2024
Written by Yuya HASEGAWA
Bitcoin pulled back after hitting its two-year high as the first ever spot bitcoin ETFs in the U.S. started trading last Thursday. The price of bitcoin briefly recovered $49k on Thursday but it quickly pulled back and dropped to $41.5k on the following day. The approval of spot bitcoin ETFs in the U.S. was much anticipated and well priced in, so the event will likely be a short- to mid-term top for the price.
Bitcoin could be vulnerable to profit-taking selling pressures in the short term, but given lower U.S. treasury yields and the market’s optimistic outlook for the Fed’s early rate cuts, its downside risk may be limited. Plus, long positions that had accumulated up to the ETF approval have been largely flushed away since then, making it less likely to cause quick and large pull backs in the price.
In sum, bitcoin will likely start to consolidate this week, and the $40k psychological level could be a reliable support for the price.
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