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Bitcoin's Potential Dip to $36K: Insights and Projections by QCP Capital

Bitcoin's Potential Dip to $36K: Insights and Projections by QCP Capital

Bitcoin

HANZO

Dec 22, 2023 at 06:08 am

In a recent evaluation, the Singapore-based digital assets trading company, QCP Capital, has provided insights into the challenges and opportunities that may arise with the imminent launch of a bitcoin (BTC) spot exchange-traded fund (ETF) in January. QCP Capital foresees resistance for bitcoin in the range of $45,000 to $48,500, suggesting the possibility of a scenario where the market reacts to the news with selling, resulting in short-term volatility for the widely traded cryptocurrency.

The analysis by QCP Capital indicates that the initial demand for the bitcoin spot ETF might fall below the expectations of the market, potentially leading to a retracement to levels around $36,000 before the upward trend resumes. As of the current moment, bitcoin is trading above $43,700 during business hours in Asia, reflecting a 2% increase for the day.

QCP Capital's assessment underscores a potential shift in market attention towards ethereum (ETH) amid the subdued demand for the bitcoin ETF. Ether is being considered as a secondary investment option, and there is speculation that interest in an upcoming ether spot ETF could drive prices higher even before its official launch. The note suggests that, given the uncertainty surrounding the bitcoin ETF, ether might present an intriguing investment opportunity as events unfold.

"Ether might also be an interesting laggard play here,"

as mentioned by QCP Capital.

"This kind of headline excitement could create some speculative uplift for ETH price whether it is warranted or not."

Bitsdat has reported on significant developments related to the bitcoin ETF, highlighting that BlackRock (BLK), Nasdaq (NDAQ), and the Securities and Exchange Commission (SEC) convened for a second meeting within a month to discuss rule adjustments for the ETF listing. BlackRock, in response to SEC preferences, has reportedly amended its proposal to include cash redemptions. Grayscale has also participated in a second meeting with the SEC.