Bitcoin, Ethereum, Dogecoin Rise As Investors Weigh Spot ETF Impact: Analyst Says Scenario For King Crypto Is 'Rejection' At $46K And Then Correction To Below $40K

Benzinga – by Mehab Qureshi, Benzinga Staff Writer.

Major cryptocurrencies on Tuesday evening posted some gains following a weekend characterized by consolidation as profit-taking occurred.

What Happened: Bitcoin has faced pressure following the introduction of spot exchange-traded funds (ETF) in the U.S.

According to data from Paris-based Kaiko, selling pressure has been focused on Binance, OKX, and Upbit by trading volumes.

On January 16, the Grayscale Bitcoin Trust (NYSE:GBTC) transferred 8,730 Bitcoin, valued at over $376 million, to Coinbase Prime deposit addresses. This transfer was disclosed by blockchain analytics platform Arkham Intelligence. The transactions suggest that the fund might have been compelled to sell a portion of its Bitcoin due to a decline in its share price.

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The global cryptocurrency market cap now stands at $1.68 trillion, showing a 0.28% increase in the past 24 hours.

The S&P 500 concluded with a 0.37% decrease, closing at 4,765.98, while the Nasdaq Composite dropped by 0.19% to 14,944.35.

Moreover, the benchmark 10-year Treasury note yield surged by more than 11 basis points to reach 4.064%. This spike followed remarks by Federal Reserve Governor Christopher Waller, suggesting a potential slower pace of monetary policy easing than what had been anticipated by Wall Street.

Looking ahead, investors are awaiting the release of December retail sales data on Wednesday. This data has the potential to fuel concerns about a downturn and economic growth, particularly if there is a cooldown in U.S. consumer spending.

See More: Best Cryptocurrency Scanners

Analyst Notes: Cryptocurrency analyst Michael Van de Poppe predicts a probable scenario for Bitcoin, foreseeing a potential rejection at $46K, followed by a correction to below $40K.

“Still liquidity ready to be taken there and it would cause a chain reaction across the markets, FUD, negative sentiment (unjustified) and such. Always ready to buy the dip.”

Primary scenario for #Bitcoin is basically a rejection at $46K and then a correction to sub $40K.

Still liquidity ready to be taken there and it would cause a chain reaction across the markets, FUD, negative sentiment (unjustified) and such.

Always ready to buy the dip. pic.twitter.com/G6kxSS2uGZ

— Michaël van de Poppe (@CryptoMichNL) January 16, 2024

Crypto analyst Benjamin Cowen revises his outlook on Bitcoin amid growing investor anticipation of a potential reversal in the Federal Reserve’s tight monetary policies in the near future. “As rate cuts arrive it’s typically not the most bullish thing for risk assets, not because rate cuts in and of themselves are not bullish, but because a rate cut in and of itself is theoretically bullish.”

Daan Crypto Trades reported on the Bitcoin Orderbook Heatmaps, stating that there are no significant anomalies in the current order books. “Two notable big walls above and below at ~$50K and ~$37K. There’s a good chance price gravitates towards those if it were to get close. Currently right near the middle though.”

#Bitcoin Orderbook Heatmaps