A top trader who caught the crypto rally at the start of the year is unveiling his outlook for Bitcoin as market participants eagerly await the potential approval of spot market BTC exchange-traded funds (ETFs).
Crypto analyst DonAlt tells his 55,600 YouTube subscribers that the approval of a spot-based BTC ETF will likely induce increased volatility in BTC.
According to the crypto strategist, it is within the realm of possibility for BTC to briefly rally once the announcement is made only to massively correct in the days after.
“Let’s say the halving and the ETF can make this thing bullish. Even if that is the case, I think the news is going to be a sell-the-news event.
You might just wick, like maybe we wick to the upside on the ETF announcement toward $45,000, $46,000, $47,000 maybe $48,000 something like that. And then I could see a 10%, 20% or 30% weekly wick to the downside that gets basically eaten up, and then you go up.
That is the most bullish thing that I could see happen. I think that’s still quite unlikely based on the fact it’s going to take a while until the ETF really kicks in.”
While DonAlt is expecting a deep correction after the U.S. Securities and Exchange Commission (SEC) greenlights the spot BTC ETF applications, he thinks the companies behind the investment vehicle will power the next Bitcoin leg up.
“The only counter-argument I could make to that is basically that it looks a little bit dumb for all of these companies like BlackRock if they announce an ETF and then Bitcoin just disappears.
So you could make an argument that they’re just going to buy a bunch basically to make this thing not look like a complete joke.”
In November, Bloomberg analyst James Seyffart said that the SEC could be setting the stage to approve multiple Bitcoin ETFs in January.
Bitcoin is trading for $43,844 at time of writing.
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The post Deep Bitcoin Correction in January? Top Trader Unveils Most Bullish BTC Scenario After Potential ETF Approval appeared first on The Daily Hodl.
