Bitcoin Price Prediction: BTC Risks Further Downfall Following Refuted Matrixport Report
The Bitcoin price dropped more than 4% over the past 24 hours to trade at $42,884.55 at press time. This 24-hour loss was also enough to drag the leading cryptocurrency’s weekly performance into the red zone. As a result, BTC was down 0.30% over the past 7 days as well.
Report Sends the Bitcoin Price Tumbling
The sharp decrease in Bitcoin’s price was primarily due to investor panic triggered by a report from Matrixport. Initially, the report presented a pessimistic view of Bitcoin, its price, and the likelihood of ETF approval. However, Matrixport later revised its stance, predicting a rise in Bitcoin’s value to $50,000.
This same report, titled “Why the SEC Will Reject the Upcoming Spot BTC ETF Applications,” was a key factor in the market downturn. It’s common for reports challenging market optimism to provoke investor reactions, as evidenced by the steep drop recorded by the Bitcoin price.
Despite these fluctuations, the anticipated date for ETF approval remains unchanged, set between Jan. 8 and 10. Contrary to speculative reports suggesting otherwise, most evidence points to their lack of credibility. Bloomberg ETF analyst Eric Balnchunas highlighted that it’s not just him and James Seyyfart who are optimistic about the crypto market’s prospects, but the sentiment is widespread across the sector.
The Bitcoin Price Attempts a Recovery
Daily chart for BTC/USDT (Source: TradingView)
The flash crash the market witnessed yesterday led to BTC testing a medium-term positive trend line that had formed on its daily chart over the past few weeks. The Bitcoin price also briefly pulled back to the immediate support level at $40,340 during yesterday’s session.
Since the sharp correction took place, the cryptocurrency has recovered slightly. TradingView data shows that the Bitcoin price was up by a slight 0.07% at press time. It was also able to register a high at $43,273.08 today. However, it has retraced to trade at around $42,870.
BTC Could Fall More as Buyers Weaken
Technical indicators suggested that the Bitcoin price may continue to drop in the next few days. Both the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) indicators were flagging bearish.
Following the strong movement yesterday, buyers have weakened substantially against sellers on BTC’s chart. This was evident by the RSI line, which was positioned well below its Simple Moving Average (SMA) line.
In addition to this, the MACD line being positioned below the MACD Signal line suggested that the negative cycle is not over yet. Should these technical flags be validated, the Bitcoin price may retest the $40,340 support. A break below this significant price point will put BTC at risk of falling to as low as $35,450 in the short term. Traders will want to note that there is still room to the downside for BTC before it enters into oversold territory.
This bearish thesis may be invalidated if the Bitcoin price manages to break above the $46,700 resistance level. A development that may boost BTC beyond this mark is a Spot ETF approval in the coming couple of days. Thereafter, continued bullish pressure could elevate the market leader to $52,310.
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