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  • BTC expected to slide to $40,000

    BTC expected to slide to $40,000

    • Bitcoin (BTC) is expected to drop to as low as $40,000 despite hitting $49,000 post-SEC approval.
    • Crypto Fear and Greed Index drops to neutral after hitting October 2023 lows.
    • Investors seek clarity as Google searches spike 1,100%, questioning BTC’s fall.

    In a rollercoaster week for the cryptocurrency market, the approval of spot Bitcoin ETFs in the US sent shockwaves through the industry. Bitcoin’s initial surge to $49,000 quickly turned into a decline, leaving market sentiment in a state of uncertainty.

    As investors grapple with the aftermath, key indicators and market analyses offer insights into potential price movements and the impact of ETF approval on Bitcoin’s trajectory.

    Bitcoin’s whirlwind

    Bitcoin, the world’s largest cryptocurrency, experienced a momentous turn of events following the approval of spot Bitcoin ETFs by the SEC. The announcement triggered a rapid price surge, with BTC’s price reaching $49,000 within 24 hours. This surge was met with excitement, as industry players celebrated a significant step toward mainstream adoption.

    However, the bullish rally was short-lived, as profit-taking sentiments among traders led to a substantial correction. Bitcoin tumbled to $41,500, wiping out the gains and prompting a shift in market sentiment. This sudden decline raised questions about the sustainability of the bullish momentum and the immediate implications of ETF approval.

    Crypto Fear and Greed Index reflects changing sentiment

    In the aftermath of the price turbulence, the Crypto Fear and Greed Index, a reliable gauge of market sentiment, took a notable hit. Dropping to its lowest level since October 2023, the index on January 15 stood at 52 out of 100, marking a shift to “neutral” sentiment. The decline in sentiment contrasts starkly with the earlier peak of “extreme greed” at 76, recorded during the anticipation of SEC’s approval.

    Analysts suggest that the index’s plunge reflects the market’s response to the ETF approval, with the initial excitement giving way to a more cautious stance. The $BTC community, eager for mainstream adoption, is now grappling with uncertainties surrounding the performance of spot Bitcoin ETFs.

    Lingering uncertainties

    Despite the approval of spot Bitcoin ETFs being hailed as a groundbreaking development, the market response has been mixed. The surge in Google searches, with a 1,100% increase for “Why is Bitcoin falling?” underscores the growing need for clear and accurate information. Investors and enthusiasts alike are navigating uncertainties, with a lack of transparency about the assets underpinning these ETFs adding to the caution.

    As Bitcoin hovers around $42,700, stability is sought amid conflicting data and speculative narratives.

    However, the future of Bitcoin (BTC) remains uncertain, with market participants closely monitoring liquidity levels, ETF performance, and the broader impact on the cryptocurrency ecosystem.

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  • Is Solana (SOL/USD) consolidation a wait for takeoff or a further slide?

    Is Solana (SOL/USD) consolidation a wait for takeoff or a further slide?

    • Solana token fell the most in November

    • Social metrics are negative for the cryptocurrency

    • SOL has been consolidating for weeks and faces further downside

    Solana (SOL/USD) was one of the worst-performing cryptocurrencies in November. The cryptocurrency came from a high of $38 on November 5 but now trades at just$13.55. The losses came in the wake of the FTX collapse. However, for almost three weeks, SOL has been consolidating at or above $13. Does this signal the entry of buyers?

    Solana’s consolidation comes amid a troubling on-chain activity. According to Santiment data, Solana’s spot and futures markets are struggling, with the trade volumes at monthly lows. As of December 2, the open interest on Solana was $208.9 million, a decline of 1.25%.

    Besides, short-position trades were active on Solana, with the funding rates remaining in the negative territory. Further indications were that there were more long liquidations ($207,000) than short liquidations ($89,000) worth of SOL.

    Clearly, the data is against SOL. Social metrics show limited upside, with the sentiment negative. Consequently, the latest consolidation may signal sellers’ exhaustion rather than buyers’ entry. A break to the downside would welcome a lower price for SOL.

    SOL consolidates at $13 amid bearish momentum

    SOL/USD Chart by TradingView

    Technically, SOL is bearish in the longer-term outlook. The RSI is escaping the oversold level but still remains way below the midpoint. A slight recovery saw SOL move to the 20-day MA, but the price upside is still muted.

    When to buy SOL?

    Solana’s price is still bearish. Investors looking to buy SOL should wait for the bear market to subside before scooping the token. A break below the consolidation zone could see SOL hit single-digit prices.

    Where to buy SOL

    eToro

    eToro offers a wide range of cryptos, such as Bitcoin, XRP and others, alongside crypto/fiat and crypto/crypto pairs. eToro users can connect with, learn from, and copy or get copied by other users.


    Buy SOL with eToro today

    Binance

    Binance is one of the largest cryptocurrency exchanges in the world. It is better suited to more experienced investors and it offers a large number of cryptocurrencies to choose from, at over 600.

    Binance is also known for having low trading fees and a multiple of trading options that its users can benefit from, such as; peer-to-peer trading, margin trading and spot trading.


    Buy SOL with Binance today

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