Bitcoin Price Struggles for Direction as Spot ETF Launches in Australia

Bitcoin (BTC) is currently caught in a tug-of-war between potential upside and downside pressures. The recent launch of the first spot Bitcoin ETF in Australia offers a glimmer of hope, but technical indicators and short-term holder behavior suggest a possible correction is on the horizon.

TL;DR

• Price Correction Incoming? Technical indicators like price clusters and RSI suggest Bitcoin might be headed for a price correction before a potential parabolic phase. Some analysts believe a drop below $64,000 could be necessary for a healthy reset.
• Support Levels to Watch: Liquidation data shows strong support at $64,500, with the cost basis for short-term holders potentially providing a floor around $62,200.
• Australian Spot ETF Launch: VanEck’s Bitcoin ETF offers Australian investors regulated exposure to Bitcoin, marking a significant step towards wider adoption.
• Market Downturn: Despite initial optimism surrounding softer inflation data, Bitcoin (along with other cryptocurrencies) has experienced a rough week, dropping over 7% in the past seven days.

A Technical Tug-of-War

Analysts are looking at technical indicators to predict Bitcoin’s next move. Price clusters around the $71,600 mark suggest a potential correction, while the Relative Strength Index (RSI) indicates the asset might be overbought and in need of a cool-down.

Support Levels and Short-Term Holders

Despite the potential correction, liquidation data suggests strong support for Bitcoin at $64,500. Additionally, the cost basis for short-term holders (those who bought in the last 155 days) sits around $62,200, potentially acting as another support level.

Australian Spot ETF: A Step Forward

The launch of the first spot Bitcoin ETF in Australia by VanEck marks a significant milestone for cryptocurrency adoption. This regulated product allows Australian investors to gain exposure to Bitcoin through a traditional investment channel.

Market Downturn Dampens Optimism

The recent market downturn, fueled by factors like a less aggressive Federal Reserve and political uncertainty in Europe, has dampened the initial optimism surrounding Bitcoin. The price has fallen over 7% in the past week.

ABOUT THE AUTHOR See More

Arslan Butt

Index & Commodity Analyst

Arslan Butt serves as the Lead Commodities and Indices Analyst, bringing a wealth of expertise to the field. With an MBA in Behavioral Finance and active progress towards a Ph.D., Arslan possesses a deep understanding of market dynamics. His professional journey includes a significant role as a senior analyst at a leading brokerage firm, complementing his extensive experience as a market analyst and day trader. Adept in educating others, Arslan has a commendable track record as an instructor and public speaker. His incisive analyses, particularly within the realms of cryptocurrency and forex markets, are showcased across esteemed financial publications such as ForexCrunch, InsideBitcoins, and EconomyWatch, solidifying his reputation in the financial community.

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