Bitcoin
on
Friday
erased
all
of
its
gains
from
an
otherwise
winning
week
after
the
first-ever
spot
bitcoin
exchange
traded
funds
were
cleared
to
begin
trading
in
the
U.S.
The
ETFs
are
widely
regarded
as
long-term
positive
price
catalysts
for
bitcoin.
As
familiar
and
regulated
investment
vehicles,
they’ll
help
draw
new
capital
into
the
flagship
cryptocurrency,
driving
demand
higher
as
supply
stays
fixed,
as
mandated
in
the
Bitcoin
code.
Many
investors
and
analysts
have
expressed
confidence
that
bitcoin
can
reach
and
even
surpass
its
all-time
high
level
of
$69,000.
Before
that
happens,
however,
bitcoin
could
see
further
pullbacks.
“[Thursday’s]
rejection
at
$48,000
is
notable
marking
the
March
2022
peak,”
Oppenheimer
senior
analyst
Ari
Wald
told
CNBC. “I
can’t
help
but
think
a
sell-the-news
scenario
is
developing
with
the
launch
of
the
bitcoin
ETFs
…
the
reversal
at
resistance
can
be
viewed
as
a
contrarian
signal
to
reduce.”
Hefty
unrealized
gains
Many
had
expected
the
long-awaited
bitcoin
ETF
approvals
to
be
a
sell-the-news
event
.
Investors
and
miners
have
been
sitting
on
high
unrealized
gains
as
the
ETF
narrative
drove
bitcoin
up
by
more
than
60%
in
the
past
three
months.
Bitcoin
slid
more
than
5%
on
Friday
to
$43,858.23,
according
to
Coin
Metrics.
The
current
support
level
is
$43,000,
according
to
Wald.
BTC.CM=
1Y
line
Bitcoin’s
1-year
performance
per
Coin
Metrics
He
said
$40,000,
a
level
bitcoin
hasn’t
seen
since
early
December,
would
be
another
potential
stopping
point.
Julius de
Kempenaer,
a
senior
technical
analyst
at StockCharts.com,
is
watching
a
slightly
higher
support
level
at
$45,000.
Wald
also
pointed
to
the
daily
relative
strength
index,
a
momentum
indicator
that
measures
the
speed
and
change
of
price
movements,
which
recently
showed
that
a
bitcoin
pullback
could
be
in
sight.
An
RSI
reading
of
70
and
higher
indicates
that
an
asset
is
overbought,
while
a
reading
of
30
suggests
it’s
oversold.
“While
bitcoin’s
price
is
coming
off
a
new
cycle
high,
RSI
made
a
lower
high
and
was
unable
to
get
above
the
70
level,”
Wald
said.
“We
think
this
is
another
indication
that
price
is
due
for
a
breather.”
New
record
could
be
in
sight
Both
Wald
and
de
Kempenaer
said
bitcoin’s
overall
uptrend
is
still
intact,
however,
and
could
carry
the
cryptocurrency
to
a
new
record
this
year.
“Once
the
resistance
area
near
$48,000
gives
way
…
that
will
free
up
the
way
for
the
continuation
of
the
rally,
and
the
all-time
high
area
near
$69,000
will
certainly
come
into
sight,”
de
Kempenaer
said.
Bitcoin
reached
its
all-time
high
near
$69,000
in
November
2021.
Wolfe
Research’s
Rob
Ginsberg
agreed.
“It
is
not
yet
overbought,
so
I
could
see
it
working
higher
into
the
heavy
$48,000-$50,000
resistance
zone
in
the
near-term,”
Ginsberg
said.
“Here
is
where
the
real
work
begins,
but
I
would
expect
it
to
eventually
break
out
following
some
digestion
and
backfilling.”
“Once
out,”
he
added,
“November
2021
highs
of
$69,000
are
in
play.”
