Bitcoin Weekly Forecast: In the absence of ETF news, BTC might potentially correct to $30,000

The price of Bitcoin (BTC) exhibits many sell indications on a daily basis. On-chain measurements are also displaying widespread profit-taking, which exacerbates its problems. Although the surge in value of Bitcoin caused by the possible approval of an ETF has helped the cryptocurrency so far, its rejection might potentially cause it to decline.

News on Bitcoin ETFs is critical to the current upswing.

For the past few years, the approval of a Bitcoin spot Exchange-Traded Fund (ETF) has been viewed as speculative. However, the advancements around ETFs have accelerated recently. Following the loss of several cryptocurrency lawsuits, the US Securities and Exchange Commission (SEC), which licences or disapproves the ETF products, has found itself in a precarious position.

The SEC’s loss in Grayscale’s lawsuit about the conversion of the GBTC product into a spot ETF offering and other developments pertaining to ETFs were the primary causes of the initial spike in the price of Bitcoin, which began in mid-October. However, Bitcoin has been trending sideways as there have been no updates.

Notwithstanding, the next significant deadline for the ETF decision is January 2024, which will see a fresh peak in the speculative Bitcoin trading frenzy. The crypto industry will be made or broken by this event. Investors should be ready for a regression up until that point, though, given that the price of Bitcoin has been emitting several sell signals.

The price of bitcoin might drop soon

Between October 16 and 24, the price of bitcoin (BTC) increased by 30%, setting a new local high at $35,280. This move had tremendous bullish momentum, which made it spectacular. However, BTC has been trending sideways since the formation of its swing high. The daily candlestick closures have generated an upward slope since October 25, which to the untrained eye would appear bullish. Upon closer inspection, the Relative Strength Index (RSI) exhibits a declining slope. Bearish divergence is the term for this non-conformity, which frequently signals a retreat or correction.

The first significant sell signal that investors should be aware of is this one.

The Momentum Reversal Indicator (MRI) has flashed two sell signals in addition to the bearish divergence. On October 23, following the daily candlestick closure, the first sell signal was presented as a red downward arrow. The MRI has displayed another red down arrow nine days later. This indicator suggests a falling one to four candlestick pattern.

Investors may therefore witness a decline in the price of Bitcoin. Important support levels to keep an eye on are the Fair Value Gap (FVG) region, which spans from $30,248 to $32,832 and has a midpoint at $31,540.