Analyst Warns of "Great Liquidation" for Bitcoin: What Will Happen If ETF Is Approved?

The Flow Horse, a popular analyst and trader in the cryptocurrency world, thinks that the price of Bitcoin is bearish on the short-term outlook.

The Flow Horse thinks that the announcement of the approval of the spot Bitcoin ETF could create a stir in the market and therefore support the rise in the initial phase as well. However, the analyst later stated that the rise will also take a hit due to the lack of underlying demand. According to the analyst, the price of BTC, which will rise under pressure from speculators, may fall in a short time due to the lack of basic demand.

The Flow Horse also thinks that bearish price action for Bitcoin could even hinder the ETF announcement. According to a Bloomberg analyst, the U.S. Securities and Exchange Commission may be preparing to make a decision on the status of spot BTC ETF applications it received by Jan. 10, 2024.

As reported as Koinfinans.com, the analyst thinks that a selling pressure may start in the last week of the year, or it may remain sideways and focus on possible ETF approval. While the possible approval has the potential to increase the price, investors who want to take profit can also start selling with the approval.

Regardless of the dynamics in the market, the analyst thinks that the first support is around $40,000 and that all investors have their eyes on this level, even the futures market. According to the analyst, investors who open futures are likely to create more volatility in the market.

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